Sunday, April 11, 2010

How to Get Business Loans Easily

Have you been wondering how to get business loans easily? To get a business loan, you will need to own a business and establish good credit for your business. It is not difficult to do but it does take a little time to get started. If you are diligent about following through, you will have your credit established before you know it.

BUSINESS - Start a business if you do not already have one. If you are starting a business for the purpose of establishing credit you will need to have a business address, business phone number (in the business name), file for a fictitious business name, apply for a business license, open a business checking account, apply for a tax id number and register with Dunn and Bradstreet. If you are selling a product, you may also need to file for a resale license. None of these things are difficult to do but it is time consuming to get them all set up. It is best to sign up for everything under the exact same business name, address and phone number. Setting up a Limited Liability Company or a corporation is optional. Check with your accountant first. You may also want to consult your accountant or tax professional to find out where and when you should start your business.

BEGIN APPLYING FOR CREDIT - Apply for two credit cards or lines of credit per month until you have about six lines of credit established. It is easiest to start with office supply credit cards and gasoline credit cards. To help fast track your credit, you can purchase a minimum of $60 on each line of credit per month and pay at least the monthly minimum on your line of credit. Never pay your credit cards or lines of credit late. You will be able to get business loans easily if you take the time to establish credit.

APPLY FOR A BUSINESS LOAN - Apply for a business loan. After about two years your credit should be very well established and you should be able to apply for and receive a business loan. Of course you will need to use all of the same business information that you used to apply for all of you business accounts.

You can get business loans easily if you take the time to build up your credit.

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