In article ,
Ignoramus14754 wrote:

On 2013-07-05, dpb 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.

I've used credit cards routinely both personal and business since uni
days simply to not need to carry any significant cash nor worry about
having the checkbook or, more recently, a check refused when not at
home. I've not paid a single interest payment other than once or twice
when out of town before telephone payment days and the check didn't get
there quite on time. A single payment of that type w/ an extended
period of on-time payment will have no negative impact on a score.

It's possible to get into trouble w/ CC's, sure, but if one is
disciplined in using them and doesn't use them just for whim purchases
just because can, they're no different than any other form of payment.
The problem isn't the CC; it's the person using it, Dave Ramsey
notwithstanding. And, since I rambled onto that already, there's
nothing wrong w/ using credit in business for cash flow or expansion or
whatever again as long as one has a solid business plan and the
discipline to follow through. This idea of never doing anything until
cash is at hand may work for low-capital-intensive operations but it
will not work very successfully in many other situations. If we didn't
have a substantial LOC we'd never get a crop planted or upgrade
machinery or many other things that are mandatory to operate the farm
profitably.

--

Thanks.

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

There is one thing to beware of: Business credit cards are not covered
under the lability limitation of personal cards, so if someone steals
the card or the number, you may be liable for the total. Unlike
personal cards. There was an article in The Wall Street Journal about
this some years ago. I would ask some pointed questions.

Joe Gwinn