On 7/5/2013 8:33 AM, Ignoramus14754 wrote:
On 2013-07-05, wrote:
On 7/4/2013 7:44 PM, Brian Lawson wrote:
...

Have you tried going to a bank, preferably one you already deal with,
and establishing a "Line of Credit", or a "Demand Payment Loan"? You
can then get a "Letter of Credit" from the bank which most businesses
will take as proof.

Brian Lawson.

FINALLY!!!!

+1

Do NOT do the stuff about letting a credit line start drawing owing to
overdrafts, etc., etc., etc., ... that will _NOT_ lead to positive
credit ratings, only overdraft fees and the like.

The one thing I would suggest that can help is to get a corporate credit
card from one of the majors and use it for routine expenses just as you
would a debit card except you're paying the bill when due at end of
month instead of it being drafted at the POS. No extra fees, no
interest, no actual out of pocket cost, but it does develop the credit
history by the record of payment.

....[big snip for brevity]...

I use credit cards all the time, I simply pay them off at the end of
the month.

That's the thing to do for the most part...interest rates are generally
far too high to use them for anything else other than, perhaps, a one or
two month float at most, occasionally, simply for the convenience of not
using some other more formal means.

But, if they're personal (and you've no other "issues" counterbalancing)
then your personal rating should be quite fine. Problem would be that
if they're not related to the business that you still have no business
credit history I presume?

But, if you have that personally and this is a single-person LLC or the
like, that should be sufficient w/ your banker to get you the credit
memorandum/guarantee. You might start by asking for just one for a
particular vendor/purchase/lease/whatever of a set amount--the lender
may be more comfortable w/ a fixed single transaction first time until
you build up a track record. If nothing else that way you could even
collateralize it w/ onhand deposits or the like if necessary to get the
ball rolling.

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