Author Topic: Establishing new business credit w/o using personal credit  (Read 652 times)


  • Stubble
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Establishing new business credit w/o using personal credit
« on: January 09, 2018, 09:05:40 PM »
I'm forming a new company for my consulting business that hopefully will grow.  I've learned with past businesses that I should start building the business's own credit ASAP.  I've managed to do this before without involving my personal credit.  I never had to sign for it personally, nor did it ever show up on my personal credit report.  Purchases from suppliers of maybe $100/mo eventually got me business credit cards w/ $50k limits.

How can I do this again?  Is it even still possible, vs. 20+ years ago?

Does it matter how I set up the business, sole-proprieter/LLC vs. corporation (ugh)?

My needs for now are light -- a couple of laptops/tablets and some cloud services.   But in the future I may have to cover payroll, and maybe scaled-up digital services, while awaiting payment from clients.

Any advice?


  • Pencil Stache
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Re: Establishing new business credit w/o using personal credit
« Reply #1 on: January 09, 2018, 10:21:47 PM »
My answer.... never start a business you don't have cash to start.

Here is how I do things.... I have as much money to start what ever I want but I set rules for myself. My current business I set a $175 budget to start. I bought a washer & dryer for $150, sold it for $350. Now I used the combined amounts to buy 3 more sets and continued to do that. This year I am set to make $100,000 profit if I choose to work that much (40 hour week). But keep in mind, if I would have wanted to start this business with $20,000.... I could have, but why? I have no business credit cards, hell, I've never even had a personal credit card.

But I'm sure all the people who think they know better will be on to tell me I'm wrong even though I wake up every day with a smile and never a worry and that's how I sleep at night. Remember me in 2 years when you might not be getting much sleep at night......

Shale Butter

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Re: Establishing new business credit w/o using personal credit
« Reply #2 on: January 10, 2018, 09:45:41 AM »
Agree with SC93. Current business started with $500, did 700k in year 4. Did use credit cards for travel benefits. Ran it debt free for first 5 years. In hindsight taking on debt, that was not tied to real property, was stupid.

Another way to consider this is to think in terms of inputs, work with what you have here you are. Instead of thinking interns of outputs, if I had X I could do Y.

If you're doing a big moonshot scale-up type business with big funding this is not the right approach I'd guess. I cannot offer any advise here. That's probably for expensive consultants and not the MMM forums.