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"Business Credit Lines" Can't Be Found Due to Poor Credit Scores

There are several specific steps to building your "business" credit so that you can become creditworthy enough to apply to lending and financial institutions. You points you need to understand are:


  • the differences between personal credit and business credit; 
  • the importance of choosing a business name and registering it with the State; 
  • the best legal entity structure for your business needs; 
  • the importance of your physical address where your place of business resides; 
  • how to apply to multiple businesses for credit lines without hurting your FICO scores; 
  • how avoid the many pitfalls that can occur when "personal guarantees" are used; and 
  • how to establish your business credit profile properly so creditors come seeking "your" business


Maybe you have a great new business idea or you already have a home based business that you want to take to the next level, but you don't have ready access to extra funds. Or perhaps your personal credit is so poor that financial institutions won't lend to you. Your goals should include:


  • building your business creditworthiness; 
  • applying for small business credit cards; 
  • applying for unsecured business loans without personal guarantees; 
  • obtaining unsecured lines of credit; and 
  • getting the working capital that you need


But you are saying to yourself "that's easier said than done". Well, what matters is that you understand what it means to be business creditworthy then personal guarantees will generally no longer be needed. It's also very important that your personal credit reports reflect a "positive" picture of you because in the beginning, you will need to use personal guarantees.

One very important point is that entrepreneurs and new business owners must keep their personal expenses separate from their business. The only way to achieve this is to establish a business credit profile so that when you apply for corporate credit cards, or commercial credit, or any type of business credit you don't use your social security number, but rather your tax ID number.


Let CL King and Associates experts help you take action in the right direction. If you are currently ruining your personal credit by overextending it with business expenses, then stop it. Consult with the experts at CL King to finance your business needs.

Also read: Benefits of Business Credit Cards

Your Credit Score And The Importance It Holds To Your Financial Security

Have you been "eyeing" a fancy new car, or how about a brand new house? Have you come to the conclusion that it is time to get it? Well, if you have, reach into your bank account grab a few thousand dollars and put a down payment on that house or car. You don't have enough money for a down payment? Relax, most people don't have thousands of dollars they can just pluck out of the air and use to buy a new car or house. If you haven't figured it out yet, here's a hint, you need a loan. It would be great if acquiring a loan was as simple as saying it, but that is not the case. In order to be approved for a loan, your credit score will be reviewed and if you haven't kept up with your bills and payments, you might be in some trouble.


Not jail time trouble, but financial trouble, and that loan you needed just might be out of reach because of your credit score. So, what is a credit score? A credit score is a number based on your credit report and everything in it. All of your larger financial transactions will be kept in this file, which is known as a credit report. Bills you have promptly paid on time and bills you have paid late will all be included in the file, such as as credit card payments, car payments, mortgage/rent payments, etc. All this information will be calculated by a statistical model and, therefore, your credit score is born.


Your credit score will effect many of your financial decisions, as well as your available financial options. A person with an average, or above average, credit rating will not have too much trouble when applying for a loan. However, someone with a very lower credit score will usually have a great deal of trouble finding a bank to get a loan from. Usually, those with low credit scores need to have someone to co-sign on the loan, and that person will need to have a much better credit rating than you. The interest rates you receive on the loan or your mortgage may also be manipulated by your credit score. Basically, the better the credit score, the lower the interest, or vice versa.


Many do not know this, but there is more than one type of credit score. The largest and most well known of these credit score companies and providers of free credit reports, in the United States at least, is FICO which stands for Fair Isaac Corporation a provider of the FICO score who are the ones responsible for coming up with the mathematical formula used to calculate a persons individual credit score. Unfortunately, this whole credit score business costs money, and in order to find out what your score is, on a regular basis anyways, your going to have to put up some cash. Luckily, there are many different sites that offer many different prices.


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.

Also read: Business Credit is a Puzzle with No Picture on the Box

Your Credit Score and Its Importance

Checking Credit


Most people understand the importance of checking their credit, but some may not completely understand why. It is important for individuals to keep an eye on their credit score so they will not be hit with any surprises once it is time to purchase something that requires a good credit report. One of the most reliable ways to check a credit score is by using the Annual Credit Report Request. There are also other options when it comes to checking credit in the form of credit monitoring. This will allow an individual to catch potential acts of identity theft and other errors that may arise quickly, so they can have them corrected before they need to use their credit. If an error is found, then an individual will need to contact the three major credit bureaus about the inconsistency. This can be done by writing a letter and mailing it by certified mail along with any supporting documents. If the claim changes a person's credit score he or she, may receive an additional free credit report with their accurate credit rating.


It is important to remember that the United States federal law not only allows but encourages everyone to check their credit with a free credit report once per year. This type of request can either be conducted over the phone or electronically. If an individual is attempting to get their credit rating electronically, it is important to avoid scams. Unfortunately, offers that are in the form of emails or pop-up ads are usually scams, along with any websites that require a credit card number for a free credit report.


Bond Credit


Individuals are not the only entities that have credit reports. Corporations have bond credit ratings as well, which is essentially their credit rating. Reviewing a bond credit report is one of the ways that investors, considering debt securities from both domestic and foreign companies, assess the risks involved. This type of rating, which are more widely known as corporate credit ratings, can be assigned to both long and short-term obligations as well as loans, insurance companies, securities, and preferred stock. Usually, long-term credit ratings will indicate whether a company will pay its debt.


There are three major entities that will provide rating systems for companies; Standard and Poor's, Fitch IBCA, and Moody's. This rating will aide investors in determining the level of risk involved with their investments choices. The ratings will range from a high quality credit score to a default or junk rating. If an investor would like to translate the rating themselves, the triple A rating is the best quality credit score possible, while a C or D score is considered junk. Fitch ICBA uses a slightly different scale that the AA rating would be a high credit rating, triple B is equal to good credit, and triple A is still the best possible credit score. With Fitch ICBA, anything lower than a triple B is considered junk. If an investor is using Standard and Poor's rating system, then D is considered the worst possible score.


A sovereign credit rating is the type of credit score that is issued to countries and their capability to provide a stable investment environment for investors. There are numerous factors reflected in a sovereign credit rating including, private investment, foreign currency reserves, economic status, and political stability. These aspects are usually the first thing institution investor’s research when considering investing abroad. Investors are not the only ones who look at credit scores in this arena, entities searching for investors will also use this to find additional funding. Investment grade reports will generate interest for a country or company, which will make it desirable for foreign investors. A high credit rating will also aide emerging market economies, which shows how safe their foreign investors' funds really are. Today, credit ratings will facilitate investments as both companies and nations attempt to improve their credit ratings.


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.

Read also: Unsecured Credit Line for Businesses

Build Business Credit and Borrow Without Personal Risk

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.

Also read: Business Credit Score and Its Importance


How to Build Corporate Credit Quickly?

Banks are notoriously reluctant to lend to small enterprises. This is because a small company, especially a startup has a high chance of failing. The risk of failure increases when the entrepreneur has not taken adequate steps for building corporate credit. This is because any enterprise needs a constant infusion of funds in the initial stages to move fast enough to take advantage of emerging market opportunities.


Basic Steps

When you set about building business credit you need to take a few essential steps first. The first is to incorporate your business and limit the liability. Next you need to procure a business identification number for the business. You also need to obtain a separate business phone number and ensure that this is registered in the yellow Pages.


Establish Trust

Next you need to establish trust by building your business credit profile. For this ask vendors to extend credit for small sums and repay them on time. Obtain a business credit card and use it judiciously, seeing to it that you pay the full amount due on time each month. These actions will be reported to the credit rating agencies and be accessed by the banks.


Ask for a Bank Loan

The next business credit builder is to ask for a bank loan. Approach the bank with a great business plan and a request for a loan. Be prepared to explain and defend your plan to the banker. You will be asked a lot of questions regarding the nature of your business and the profit potential. If your business is old enough, take the old balance sheets and copies of the IT returns as well. These will help convince the banker that your business venture is indeed profitable.

Initially, your credit builder program should also be prepared to pledge the business properties and machinery to obtain low cost funds. In the event that you do not have collateral to offer, the bank will charge a higher rate of interest to compensate it for the greater risk it is incurring.


Approach Other Financial Institutions

Apart from banks, credit unions and other financial institutions too offer small business loans. Explore these avenues of funds as well. Corporate credit concepts make it clear that the cost of funds will be higher when the risk is greater. By being prepared to shell out a greater interest in the initial years, you will be building corporate credit more quickly.

Once the bank is familiar with your business account, establish credit lines for future needs as well. Ask the bank to sanction a loan for a higher amount than your current needs and use the extra funds to explore new business opportunities.


Building corporate credit is difficult only in the first few initial years. Once the trust is built up, funds flow will not be a problem at all. By following the steps outlined above, a new business should be able to shorten the time taken to get banks and other lenders trust it with their money.


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.

Also read: Business Credit Mistakes - CL King and Associates

Corporate Credit Should Never Be Misused

Any business owner can tell you that it is difficult to get corporate credit up and running. Therefore it is essential that you do your best to keep things on track once you get it all set up. One of those areas you need to give special attention to has to do with your employees. Many of them may need to access corporate credit either occasionally or on a regular basis.

Some companies just don't have good policies in place so employees really misuse the corporate credit by default. Those things that fall into a gray area often get turned in when they aren't eligible. For example they may turn in charges for drinks they had at the bar before a business dinner. This isn't a necessity so you may only want to cover the cost of the dinner and the drinks are their responsibility.


Not everyone should need to have access to corporate credit, and you want to limit it where you can. It is going to be easier to track expenses if you only have a small group of people making them. It will really depend on the type of business that you offer to people though. Sometimes you just can't help but allowing a large number of people to access it.

The big thing though is to ensure all that have access to it don't misuse it. They should only be using it for business related expenses. If their spouse travels for business with them then their cost of airfare and meals needs to come out of their personal budget. You should be asking for verification of what they are doing at the time of a given charge. This way there is a good record of all that information.


Initially it may seem like you are micromanaging in this area, but you don't want to get taken advantage of. There have been reports of employees buying everything from makeup to meals for themselves with corporate credit. They have been known to buy cars and even pay their own mortgage payments. These events are only taking place though where employees know they have a very good chance of getting away with it.

This is a much better scenario than finding out a large amount of money has been frivolously charged to such accounts. If you aren't prepared for it financially it can be devastating for the overall effect it will have on your corporate credit. You also can't expect your employees to just pay such expenses out of their own pocket. Even if you will reimburse them for them later many just can't handle that type of financial burden.


If you are hesitant to implement strict guidelines relating to the use of corporate credit, take some time to read stories online. You may be amazed at some of the things that people have done for their own gain with such access. It only takes a few people out there with such intent to create a huge problem for any type of business.

Of course honest mistakes will occur from time to time. Give the employee the chance to explain what took place. For example they may have given the business credit card number instead of their personal one because they are so accustomed to traveling for business. You will have to review these instances on a case by case basis.


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:

For Better Business Prospects, Build Corporate Credit

For establishing your credit worthiness with creditors you need to build corporate credit. By doing this, not only does your business grow fast, but also your credibility goes up significantly. When you are a serious business person and have a strong corporate credit, chances are that any loan requests will not be turned down compelling, which otherwise may compel you to withdraw money from your personal pool. So before you apply for a loan or a lease, build your corporate credit and create your credit reputation.


Build Credibility of Your Company
If your company is a Corporation or a LLC, getting significant credit is always possible. A business credit assessment goes a long way in proving the genuine nature of your business. Getting an IRS approval by means of a Federal Tax ID is recommended to create a separation between your corporate and personal activities and credit. Apply for and acquire all permits and licenses that are required by paying the required fee to the state or city governments. Have a business address, relevant mail address, and website and telephone lines to establish your presence. Ask for an audit to ensure that you meet all the necessary stipulations for running a business. Creating an online presence through web and advertisements also go a long way in establishing strong corporate presence.


Look Out For Small Credits and Lenders

It is a good idea to approach small business credit providers. However, ascertain the rates and fees before you accept credit from them. Later on corporate houses will use this important history. Thus, if you want to build corporate credit, you need to pay back the creditors on time. When you establish a good payment history for a period of six months, you can expect to get bigger loans and credit. Make a liaison with at least six such companies that will report on-time payments on your behalf. Establish an accounting system for paying back these companies so that the records add to your credibility.


Move On To Higher Credit Lines

When you build corporate credit on a lower scale, you are eligible for larger credits now. Increase the credit amount as you expand your business. Repeat the earlier terms for these companies too and pay all bills on time. Now is the time for you to move up to higher credits and even unsecured business credit from banks and other commercial lenders. You can expect a personal credit check from these lenders and even a guarantee from you ascertaining payment.


When you create business credibility remember to start from the bottom and rise up to the top. Creating a good credibility will ensure loans from higher bodies. It would help to have a corporation which has a strong sales and a good future growth. A business plan explaining the purpose of loan, the company requirements, the amount of money used and strategies for loan repayment will build business credit immensely. Professional help that guides you through the steps to build corporate credit are available and benefit your business credit greatly.


For more details you can consult with CL King & Associates.
CL King provides investment banking, equity research, sales and trading, and investor services to corporations and institutions. We co-manage bond offerings, IPOs, follow-ons, secondaries, convertibles, and preferred.
If you want to learn more, please visit here:

Corporate Credit Ratings Show the Company's Worth

Numbers matter. Everything translates to numbers these days. Some say we can actually predict our future through numbers. That is why when one wants to learn astronomy, one just does not look at the stars but one has to learn numbers. The success of the business can also be translated to numbers. The higher the corporate credit ratings are, the more successful the business is. These numbers can even be equated to the company's worth.


Since it matters, one needs to know how to improve the company's scores. The first thing one needs to know is where your company stands now in terms of financial standings. The financial standing is a mixture of financial history, current assets and liabilities. Get the ratings now and compare it to the numbers that you have. Compare and contrast everything. If there are errors when it comes to what is shown in the financial report, have it corrected immediately. In the business world, what others perceive of your business matters. That is why companies give positive press releases about the company. It ensures that more investors will come your way. More investors mean more money for the company. The credit rating is the deciding factor. Possible investors will be fixed on the number reflected at the corporate credit ratings. Investors do not just invest their money without looking at the company portfolio. The numbers should be good, the corporate credit ratings should be high. This is what owners work for, to have the highest possible rating that their company could have, so more investors will come their way.


Therefore, numbers can actually predict the future, your company's future.


CL King provides investment banking, equity research, sales and trading, and investor services to corporations and institutions. We co-manage bond offerings, IPOs, follow-ons, secondaries, convertibles, and preferred. In addition, we transact directly in the capital markets on behalf of corporations through our Corporate Services business focused on share repurchase and continuous share offerings ("ATMs"). CL King and associates is also a leading woman-owned securities firm and is WBENC-certified.

If you want to learn more, please visit here:

Lessons Learned For Businesses Entering the Trade Finance Market

The Internet has become in incredible earning tool, especially for small businesses. While there was a time when the international trade finance market was limited to corporations with big budgets that could advertise internationally, the Internet has made it possible for small businesses to go mainstream with a simple click. It has become so popular that there are specialty agencies and branches of financial institutions to assist in this very process.


For the small business that is having issues with finances to take advantage of this new niche that is suddenly available, there is government funding that can be used if they qualify. Online searches will usually turn up a wealth of information and then it is a matter of sifting through it to find what will work. If there are questions, contacting the agency directly is always the best way to make sure that the right information is obtained.


Most of these programs can direct the small business owner to the proper contact or financial institution that can help secure the funding that is needed. These specialists are versed in the latest international laws and will set the small business owner up for success. Because they have people in just about every country, they are familiar with laws that someone strictly based in the United States may not be fully versed on yet.


Most websites have a FAQ section that will enable the user to ask questions. There may also be a public forum where questions can be asked and then answered by other users that have already gone through the process. Some of the more popular sites will also have guides or how to manuals that can be easily downloaded for a more thorough look.


International trade finance is a niche of business that is filled with quite a variety of opportunities. Because there are so many different areas to explore, it can be a bit overwhelming at first, but with the right guidance, the answers and direction will be found. Whether it is through a help menu or an actual adviser, you can get help setting up everything from financing to legalities that must be completed before the business is opened.


Filling out the paperwork and forms is easy. Most of the time, it can be done right online. For the business owner that is skeptical of having their information put out on the internet, there is also the option to download the files and fill them out by hand. Once completed, they can be mailed into the proper agency.


While the concentration of this has been on small business owners, the same opportunities are available for large corporations that are looking to go global. Regardless of the size of the business, international finance trade laws are run through the same agencies. Where small businesses are usually limited in staff, many larger corporations will have specialists that handle all of these technicalities for them.


While the Internet is a great place to do business, it is also a great place to find information. Instead of rummaging through the phone book and trying to get information from government offices that are going to put you on hold for hours, use the Internet as the tool that it is. There is a wealth of information at your fingertips and it will not be long before you become an international trade finance expert.


For more details you can consult with us at CL King and Associates.
CL King is Uncovering Hidden Investment Opportunities Since 1972. We provide investment banking, equity research, sales and trading, and investor services to corporations and institutions.
Call us 518.447.8050 today and let us explore some best investment deals for you! Or visit us here:

A Successful Corporate Strategy Rises From Team Building

Success hails from unity and a team is all about the bonding entailed in it. Teamwork encourages collaboration and better quality of work. Successful team bonding is not only about reaping revenue. It definitely includes involvement of each member and how they coordinate with each other while executing a strategy. Also, you call it success when group members are being able to perform efficiently under different circumstances.


Why do you think people emphasize on team building? There are several reasons that justify the growth of it; one of the basic factors being result and growth. In order to achieve goals, leaders on and off have to plan events on team bonding. From conducting motivational activities, helping members learn proper execution of plans to training them on conflict resolution, the leader has to cover these core areas to ensure 100% goal achievement.


There are several reasons why corporate team building has become an essential aspect among companies. They have been mentioned below:


  • Bonding is one of the most effective ways to improve upon the quality of work. When it comes to accomplishing projects and various other goals, nothing can work better than team bonding. It involves team members to work together and unanimously give in efforts to achieve objectives. Also, the members are required to understand the interests, strengths and weaknesses of each other.
  • Socializing with one another is important. This approach is considered effective in enhancing the productivity level. Group bonding and socializing also increases the morale among employees leading to better outcomes.
  • Time to time celebration is needful in order to boost confidence among employees. Each member is important for functioning of an organization. Hence it is important to include fun activities. The fun and cheering involved in such activities can inherently add to the spirit of each member, helping increase the bond between each and other.
  • Competition is known to enhance production. The leaders use this as a tool to trigger the competitive mood among members so that they can give in their best and help the entire team attain success.
  • Communication among members help bring about better productivity. In order to usher in a friendlier work environment it is important that each employee interacts with the other. Proper mingling will make it easier for them to work in a diverse working environment.


In order to attain overall success, it becomes a necessity to boost team bonding


For more details you can consult with us at CL King and Associates.
CL King is Uncovering Hidden Investment Opportunities Since 1972. We provide investment banking, equity research, sales and trading, and investor services to corporations and institutions.
Call us 518.447.8050 today and let us explore some best investment deals for you! Or visit us here:


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