Are you planning on starting a business or investing in real estate? Asset protection expert, Kevin Wessell strongly recommends forming a corporation and building business credit instead of using your own personal credit.
If you are planning on starting a new business, probably the first obstacle you will run into is how to raise the money for the office space, equipment and other business expenses. You may be thinking about taking out a personal loan, maximizing your credit cards, borrowing from your family, using your life savings, even taking on a partner.
Consider forming a corporation and building business credit instead
The benefits to this strategy are:
- Get cash to cover start up business expenses or grow your business
- Get open lines of cash credit to operate your business
- Get automobile and equipment leases without a personal guarantee or personal credit check
- $50,000 in lines of business credit and credit cards with additional programs of up to $5 million available
How Long Does it Take to Build Business Credit?
Not as long as you think when you know what you are doing. It doesn't have to take 4 or 5 years to build up your business credit, but rather 30 to 90 days when you use a professional business credit building service or purchase a shelf corporation or aged company.
These are accelerated credit building programs or corporations that are already created including pre-established credit, which means you are ready to start getting lines of business credit right away.
Benefits of using a professional business credit building service or purchasing a shelf corporation or aged company:
- Immediately own a company with a corporate history.
- Easier to obtain business credit cards and business credit lines.
- Often, lenders require a business to have been in existence from six months to two years or more before lending it money.
- Ability to borrow money from banks.
For those thinking of purchasing an aged company and want to know how much they cost, here is a list of aged companies for sale to help you better plot your business credit building strategy.
And remember if possible, try to avoid using your personal assets as collateral for your business when obtaining a loan.
If you want to learn more, consult with the experts at CL King and Associates.
CL King provides investment banking, equity research, sales and trading, and investor services to corporations and institutions. The firm also co-manages bond offerings, IPOs, follow-ons, secondaries, convertibles, and preferred.
If you want to learn more, please visit here: http://www.clking.com/
