Can New Entrepreneurs Get Business Credit Lines?

November 24, 2016 by CNH Finance, LP in category “Financing”

Almost immediately after registering a business for a tax identification number, marketing for business credit lines starts to pour in.

“Special offers for new business owners!”

“Limited time introductory rates!”

“Get unsecured credit while this offer lasts!”

The junk mail seems overwhelming, and sifting through it all to find a decent business credit line can seem like a losing battle. The whole process can be frustrating, because having access to business credit lines are necessary for both new and growing companies. Fortunately, there are a few things entrepreneurs can do to get access to business credit lines without getting locked into credit card agreements or dealing with rejections or prohibitively high rates due to low credit ratings.

Talk With Your Vendors

Vendors and suppliers usually offer business credit, even if they do not advertise it. Vendor credit and financing options not only make purchases more affordable, but may also give entrepreneurs the ability to build business credit ratings. Shopping around for the right vendors is key. Ask vendors and suppliers if they submit information to credit reporting agencies. If they do, then your purchases will go toward improving credit ratings. If they do not submit information, then you could spend a million dollars and not see your business credit ratings improve by a single point.

Get A Secured Credit Card

Rather than get an unsecured business credit card with a very limited spending cap and high “introductory” interest rates, opt for a secured card instead. Secured cards for business work the same way as they do for individuals. The amount you can spend is tied to the amount available in the bank or loaded on the card. As the card is used, credit ratings increase. Over a short period of time, your business will qualify for a good unsecured line of credit with a high spending limit and lower interest rates.

Create Your Own Business Credit Lines

Through asset based lending, entrepreneurs can create a revolving line of credit structured around the value of equipment, receivables, and other property owned by the company. This functions as a regular business line of credit, except that is grows proportionally with your business. As sales increase, new equipment is acquired, or property is purchased, the spending limit on asset based business credit also increases.

Get Business Credit From Within

At CNH Finance, we are committed to providing the best asset based business credit solutions. Contact our offices today to find out how our team can work for you.

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