How To Get Business Credit Without Personal Guarantees

It is difficult to get business credit, without a personal guarantee. If your company is new, obtaining credit will be an uphill battle.

Step 1 – Establish a Credit File for Your Business

You will need to establish credit with the 3 major credit bureaus that track your personal credit. You will also need to establish credit with the major business credit company, Dun and Bradstreet (known as DnB). DnB will issue your company a number that is your credit file number. The credit number works similarly to a social security number. Whereas your personal credit history can be brought up with your social security number, your business credit history is brought up with your DUNS number. A good DnB credit history can help you get business credit.

Step 2 – Work with Creditors

When you obtain credit from a lender, in the beginning stages of business your only alternative may be to give your personal guarantee. However, work with the creditor to report your payment history to DnB as well. Each time a creditor reports to DnB, it will be entered into your business credit history, establishing a payment record file.

It will take some time to do, but establishing a good credit history for your business is important and will eventually remove the need for you to give a personal guarantee to any creditor.