Many businesses have a hard time creating credit in the name of the company.  This is primarily because most go out of business in the first 5 years. Leaving investors holding the bag.  Most banks, manufacturers and credit card companies prefer not to take the risk. 

That's not to say you can't obtain loans and credit cards.  However, the rates may drive you to the edge.  To increase your ability to obtain capital and credit at reasonable rates, begin local and create a credit history for your firm.

To start, place your business phone, internet access and fax services in the company's name.  Out of habit, most people put these items in their own names.  This also goes for any other service your business may use as well as other purchases (especially online) that are made for the company.

Next, make sure your checking account contains your company name.  Try to get away from "Joe Smith, Doing Business As (DBA) Treetop Services."  Use the company name, address and phone on your checks.  If the bank prefers not to do that directly, there are other check printing services that will such as Checks Unlimited at www.currentchecks.com.  This is perfectly acceptable and will not create problems with your bank as long as you are set-up with a business checking account and not a personal account.

Next take a trip to your local office supply store and set-up a corporate account.  If you don't use many supplies but frequent Mail Boxes, Etc. (now The UPS Store) or a printing shop, set-up the account there.  Remember the account must be in the company's name.  Your name will also be listed on the underlying paperwork but these vendors will be able to give your company a credit reference.

After six months or so of on-time payments with no hassles or issues your company credit will be well on its way to being established.  Your credit references will be ready to be used to obtain major credit cards, bank loans, a merchant account and other credit.

If you have questions or need clarification on anything, please feel free to call (406-216-2224) or email us (suzette@flemmingbusinessservices.com).