On Thursday, July 4, 2013 8:44:28 PM UTC-4, Brian Lawson wrote:
On Thu, 04 Jul 2013 15:40:15 -0500, Ignoramus12069

wrote:





I have a corporation since 1998. I have never borrowed any money for

the corporation. My view on borring money for business is very simple,

if I do not have money for something, I do not do it.



But, it so happens that from time to time, I need to establish an

account with a new vendor, they check my credit history and tell me

that I have no credit history.



I am loath to borrow money, but maybe I can borrow some small amount

for a few months just to establish some credit history? what is the

easiest way to acquire a credit history?



Thanks



i





Hey Iggy,



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.

Further to that, if the bank is even a little bit hesitant, offer to secure the loan by placing a sum equal to the size of the loan into a CD which they use as collateral. I did that in 1984 to establish credit for my new corporation. I think it was about $5K. That was enough to bring a flood of credit applications from my vendors. Getting net 30 terms just hasn't been a problem since then, though I prefer to use the credit card, just for the convenience of having to pay only a single bill at the end of the month.

On the other hand, in the 29+ years of being in business, I have NEVER bought anything that I couldn't pay cash for. I pay off the credit card in full every month, and don't owe anybody a nickel.

I had a conversation a couple of weeks ago (and I've had several such conversations over the years) with a banker who wanted to sell me some rather large loan. I told him of my cash policy, and he very indignantly asked me, "How do you ever expect to get ahead in the world if you won't take a risk?" I explained to him that my mortgaged is paid off, I have no debt, and comfortable savings, and that I doubted that he could say the same for himself. And, by the way, I expect to get ahead by not wasting my time talking to people who are trying to insist that I'll never get ahead without buying something I don't need from someone I don't know or like.