subject: How To Get Your 2nd Business Line Of Credit. [print this page] Well, maybe not quite that easyWell, maybe not quite that easy. Because your loan officer is going to look at you just as hard the second time around as he/she did the first. There are no free passes when it comes to getting credit, so you better be prepared to look good.
Heres how you do it:
First and foremost, make sure your business credit is in good shape. That means that all business credit cards have been paid in a timely manner, as well as bills from suppliers, utilities and the like. To find out how you stand, check with Dun & Bradstreet. They keep tabs on virtually all small businesses, and will have a record of your payment performance. If by some chance, theres a blot on your record, find out what it is. You can be certain your loan officer will want to know whats its all about. Its up to you to make sure it can be explained, or better, removed before you apply for a loan. Dont have a Dun & Bradstreet credit profile? Get signed up as soon as possible. A Dun & Bradstreet credit profile is the best way to get your business credit on track and supercharge your business with vendors and lenders. This demonstrates to the banks that your business is a real business and not in a van down by the river.
Ask for more than you actually need. It may sound scary, but remember you only use it as you need it. Thats the beauty of unsecured lines of credit. Yes, bigger loans mean bigger payments, but remember you only pay on what you use. This is about getting the right amount of unsecured lines of credit so that you dont necessarily have to go back to the bank anytime soon. Applying for too small a loan can be just as dangerous as applying for too big a loan. Because then you have to keep going back. If you ask for the right amount then it will sustain your business for a little longer.
Clear up your personal credit if you have any problems. Your credit was probably pretty good when you were granted your first loan, but if for some reason its taken a hit since then, youd better clear it up and fast! Even though your business may be booming, lenders know that personal credit problems could carry over to your business down the road. That means getting your report from all three of the major credit-reporting bureaus Equifax, Experian or TransUnion. This way youll find out exactly where you stand.
Anticipate, organize and be prepared when you make your loan application. Sounds simple enough, but have your financial consultant prepare an interim financial statement, incase the banker asks for it. However, remember that you are applying for unsecured lines of credit so you dont have to put up your business or personal assets for collateral. In short, anything that will make you look more professional and prepared in the eyes of your lending officer, but dont offer it if they dont ask for it. The fact that youve prepared this material means less work your lending officer. Nothing wrong with that scenario!
Pat Gage, The Opportunity Creator, has over 18 years experience in money and finance, business building, real estate investing and marketing. The Opportunity Creator is not only a sought-after business coach but he also is a national speaker, trainer, and life-long entrepreneur who himself has started several companies.
For more information, visit Gages site at http://www.10stepstomoney.com
