Another way to leverage your business credit it to take advantage of opportunities that may be costly up front but will end up saving you money, such as business equipment.  If you can save money on energy efficient equipment, or save money on trash removal because you buy a trash bailer, wouldn’t you take that opportunity.  But the only way you can do this is to use your business credit.  If you don’t have business credit, or even if you do, you should check out the Insiders Guide To Business Credit.  They walk everyone, from the new business owner all the way to the veteran through the steps to get business credit for…

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It really puts you in a predicament with only 2 ways out.  One, you can just continue to keep your business afloat, doing the minimum in areas of advertising and staffing.  Maybe you have to work 6-7 days a week because you cut an employee, maybe you don’t run that ad in the paper because you can’t really afford it.  

Option 2, which is the option smart companies are choosing, is to take advantage of the situation that EVERY business is in, and use it to your advantage.  Because you know that everyone is hurting why not do something different then the competition.  Use your business credit lines and loans from the bank to work on marketing to new customers.  Make the customers you have remember why they chose you in the first place by treating them like they are VIP’s because they really are.  A little goes a long way, especially when everyone else has stopped spending, your few dollar investment in a customer loyalty program, can go even further NOW.  

So how do you get a large credit line or a loan from the bank … with the help of your business credit.  Using guides like the Insiders Guide To Business Credit can help any business hone their business credit file so that they can get a bank loan or large credit card, without the need of using the owners credit file for approval.  Imagine using that business you have built as the leverage in every financial transaction you make.  It can happen if you start today.  

Visit http://InsidersGuideToBusinessCredit.com to find out more and to get a free copy of their small business credit guide.

So now you ask how…how exactly do you get the money to spend now so you can see returns from your customers, both current and future.  You invest in systems that help you create credit for your business.  You visit sites like http://InsidersGuideToBusinessCredit.com .  They can help get you on track so that you can have the money you need to do the marketing you must do.

This is a golden opportunity to get your business to the front of the pack at discount prices

I know from personal experience that when you start a business it can be difficult to keep cash on hand, as startup expenses can be overwhelming, but now even businesses that have been around for over 3 years are starting to worry about cash on hand to pay for tax liabilities, thanks to the slowdown in the economy.

So what are companies doing to survive this financial crisis? Smart businesses are using their business credit. As a business owner it is vital to have access to this credit in the form of credit cards, bank loans, or even a bank line of credit. I know it can be intimidating to think about approaching a bank for a line of credit or even a loan, but once you have the proper credit in place for your business they will do most of the work for you.

Thousands of businesses get started on the path to obtain business credit each day, and they don’t have to worry where the money if going to come from, will this be you?

Business credit cards, as you may know, are just like personal credit cards, but issued to your business, not to you. You don’t have personal liability and you don’t have to use your business credit.

Here on some tips:

1. Make sure that the “business” credit card you are considering reports your credit to a business credit agency, such as Experian Business, Equifax Business and Dun & Bradstreet. Cards that report to consumer credit agencies are not business credit cards, and will neither boost your business credit profile nor protect your personal credit profile. You need a real business credit card.

2. Check the rates and shop around. If your business credit is good, regardless of your personal credit, you should be able to get good terms, including a good interest rate and rewards, on a business credit card.

3. Business credit cards usually have very high credit limits in comparison to personal credit cards. You may see credit limits of over $50,000. If the first bank you apply to offers a low credit limit, shop around for a better limit, or ask them how you can get that increased.

4. When you do get a business credit card, make sure that you use it for business purposes ONLY. Do not mix personal and business purchases on your business credit card; this is one reason you have a business credit card.

5. Look for a business credit card that itemizes yours statements to show exactly where your money went. Your accountant will appreciate this when it comes time to itemize your expenses at tax time.

Getting a business credit card is one of the best things you can do to grow and expand your business. Knowing exactly what to look for and how to find a credit card for your business makes the process much easier. Keep in mind that most business credit cards have lower rates and higher credit limits than personal cards, so you should be able to find a good credit card for your business.

If you have difficulty finding a favorable rate and a high enough credit limit, keep shopping around. If you’re unable to get exactly the card you want, spend some time building your business credit profile and try again; you will probably find much better terms. Like anything you do in business, it can take some time and effort to build your business credit profile, but it’s well worth it.

Do not underestimate the importance of business credit to your business. You absolutely need credit that is not tied to your personal credit and that will reflect your business’s integrity. This is one of the most important things you can do for your business.

So exactly what is a merchant cash advance? It’s not unlike a payday cash advance. A lender gives you a loan based on your recent credit card sales, and takes a percentage of future credit card sales until the loan is repaid. These lenders will often lend to merchants with less than stellar credit, but they generally will not lend to new merchants or merchants without a proven record of significant credit card sales, because they rely on credit card payments for repayment of the loan.

There are definitely some advantages to the borrower with this type of loan. First, as mentioned, these lenders will often give cash advances to merchants with less than stellar credit, as long as they have a solid credit card sales record. Merchants who really need a loan and can’t get one otherwise can probably get a cash advance loan.

Many traditional small businesses with healthy financial statements have difficulty getting a traditional bank loan for various reasons, and these merchants, too, may find an MCA useful.

However, as with everything else, there are also disadvantages to merchant cash advances.

First, the charges vary widely from one loan to another, even with the same lender. Payback is calculated on a fixed daily percentage; you pay back the loan as you sell. The more credit cards sales you do each day, the faster you repay the loan. This can make your payoff higher, rather than lower, due to the fixed payback percentage.

In any case, the cost of borrowing money through a merchant cash advance is always going to be higher than getting a traditional loan.

Should you get a merchant cash advance? The answer really depends on your circumstances. If your business is bringing in steady credit card sales and you know you can repay a loan, make the effort to apply for a business line of credit or bank loan. If you are unable to get financing through traditional means, and you really need the extra cash flow, you can consider a merchant cash advance.

Be sure that your credit card sales are steady enough to repay the loan, and that you understand exactly how much the loan will cost you. Talk to several lenders and get quotes and terms in writing. If you have any doubts or questions, ask your accountant and/or attorney to go over the information and help you make a decision.

If you decide to get a merchant cash advance, keep in mind that you will pay more to borrow money this way, and it is not a perfect solution to your cashflow situation. However, it definitely is one solution.

The best way to start your business credit profile is to get a business credit card. If you have not business credit at all, you may need to start with a trade credit card, such as a card from an office supply store or computer vendor. Use the card carefully, pay the bill on time, and keep the balance low.

Use your business credit card responsibly and apply for more business credit every few months. Ask your vendors to extend terms to your business after you’ve been with them for a while. Look into getting another business credit card. Lease some equipment, or set up a line of credit with a supplier.

You will not have excellent business credit immediately; it takes time and effort to build a positive business credit profile. It’s no different than building your personal credit cards. You must take the time and make the effort to develop credit responsibly.

If you do not currently have a business credit card and you need to get one, make sure that you have a business bank account and phone number, and that you are an established business. You may need to prove that you’re a going concern. Incorporation is not necessary, but can be helpful.

The main thing is, you will have to start from scratch in building your credit record. You may have to pay suppliers by credit card for three or four months before you can establish credit with them. While this seems like a lot of trouble, going to this trouble now will make your business credit look much better down the road.

Be careful, when establishing accounts, to only establish what you need, where you need it. And watch your spending. This is your business, and you need to keep your business credit profile very good. It can be difficult sometimes to avoid that new “thing,” but you absolutely have to if you’re going to establish business credit.

It may help to make a written plan of how you intend to build your credit. Think out how you can get to where you want to be, and what you want to accomplish and what you need to purchase during that plan.

Consider building business credit just another part of your job as a business owner. It’s not always fun, but taking the time to do it well will make your business grow faster, and will put you in a good position to take advantage of future opportunities as they arise.

Credit gives you flexibility, and you absolutely need to be flexible to be ready for every challenge you will face as a business owner. Building credit is not only a good idea; it’s practically a necessity if you intend to create and maintain a thriving business.

First, you must set up your business as an official entity. You can do this most easily by establishing a corporation or an LLC. File officially with the secretary of state, and get all the necessary business licenses and permits required by your state, county and city. You will need to use a physical address for all of these filings and registrations, but fortunately you can use your home address if you do not have an outside office. Even if you use a PO box for your mailing address, you can use your home address as your physical address.

Next, register your business with the business credit agencies. The big agencies are Dun & Bradstreet, Experian Business and Equifax Business. Getting a D-U-N-S number from Dun & Bradstreet is your most important first step in getting business credit.

Next, apply for business accounts with creditors. Don’t go overboard here, of course, but start by applying for a business credit card, and getting accounts with suppliers like office supply companies that offer business lines of credit.

Once you have business credit, make sure you keep your spending under control and make your payments on time. Whenever possible, make more than the minimum payment, and always stay on top of your bills so you keep a high credit profile.

Keep an eye on your business credit reports, from all the agencies. Especially take a look at the reports before you apply for major credit like a commercial loan; you don’t want any mistakes to keep you from getting the credit you deserve.

It can take time to build your business credit, but if you are very careful with the credit you’re offered, and make your payments on time, you can develop a very good business credit profile in a few months.

When you’re ready to seek a commercial loan, you will need business references and financial statements, as well as all of your business organization documentation and licenses. These items, as well as your business credit profile, will help you prove to a lender that you have a going concern and not a hobby.

One last thing you can do immediately to prepare for applying for commercial loans later is to write your business plan. If you write it now, and start building your business according to a solid plan, you can write a “business plan actual” report later to show how your business has performed according to plan. This will help you get the credit you need by showing that your business is performing well. It will also help you run your business well.

Best of luck in your credit building.

Get business credit without a personal guarantee. This is not as hard as it may sound, because lenders are in business to lend money. They’re not willing to lend money that won’t be paid back—that’s actually giving money away, not lending it. But lenders want to lend money, so they can get the money back with interest.

You can get business without personal guarantees, but you will first need to establish a business credit profile. There are several business credit reporting agencies. These organizations, which include Dun and Bradstreet, Experian Credit and Equifax Credit, are similar to the consumer credit bureaus, but they’re for business credit.

You will need to build a minimum Dun and Bradstreet credit rating of 75 (on a scale of 0 to 100) to get a non-guaranteed commercial loan. So if you’re planning to apply for a loan, you will need to get listed with Dun & Bradstreet (called getting a D-U-N-S number) and build a credit profile.

To build a credit profile, you will need to set up accounts with a few companies that report credit to D & B. A business credit card is one creditor that will report to D & B; many vendors like office supply and office furniture companies will also report to D & B. You need to set up a few accounts, use them wisely, and build your credit profile. Make sure you pay on time and keep your balances low.

The key to getting a commercial loan without a personal guarantee is to prove first that your business is creditworthy. And of course the way to do that is to generate a good business credit profile. It works much like your personal credit profile, and once you understand how to do this, it just makes sense. But until you have some idea where to start, it can be very confusing.

So your first step will be to establish some business credit accounts. Do this slowly over a period of a few months, and pay your bills on time. If you can pay more than the minimum on your accounts, do so. In fact, if you can afford to get a business card from American Express and pay off the full amount each month, this will significantly raise your credit profile.

Running a business should not require you to pledge your personal guarantee and put all your credit needs on your personal credit report. And it doesn’t require that. But it does require that you get a business credit profile started and build that credit profile so that you can get business credit, including non-guaranteed loans, on the strength of your business credit.

The failure of major banks, the fire sale of WaMu, and now Wachovia is looking for someone to purchase them. The times are financially scary, and it will only put a further strain on your personal finances if you have to pay for your business with your families credit cards.

The time to take action is now, you need to separate your personal credit from your business credit. Imagine if you needed $10,000 to keep your business running during this crisis, but all you had was your personal credit line to support it. You can take one step in the right direction and get separate business credit for your company.

Once you are creating your business credit with my help you will wonder what took you so long to start this in the first place.