There is no hiding the fact that having their own business is something many millions of people dream of doing. Many do, of course, but fact remained that so many others never quite get around to it. It is worth mentioning in this regard that one of the factors that may discourage people from getting that business off the ground, is a lack of start up capital and of course the risk of losing their own money.

If experts are to be believed, with a bit of thought, planning and effort, though, it may be possible for you to not only raise some start up capital, but do so through business credit. Believe it or not, it is possible to borrow against the business rather than personal assets.

Theoretically speaking you may be thinking that you have no business yet. That may be so, but fact of the matter is it does not mean you cannot obtain business credit to get your plans started.

It is worthwhile remembering that building business credit is completely different from building personal credit, and it is best to keep them separate if possible. In simple terms, some credit reporting agencies will sell a business FICO score based on both the risk of the business and the personal credit of the owner. On the other side of the coin in some cases, the owners personal credit is linked to the business credit, separate credit records are profitable. Furthermore you should take into perspective the fact that you do not have the same credit protection laws with business credit as you do with personal credit.

Below are some pivotal steps to follow in building a good business credit record. These can go a long way in giving you the much-needed cushion in terms of building business credit.

1. First and foremost, it is quite pivotal that you prepare Business Plan And Structure

It is worth mentioning in this regard that you are now in the world of business credit, not consumer credit. This clearly emphasizes the point that you are trying to project yourself in a business-like way. According to experts, in preparing yourself to do this, you will have the added bonus of preparing yourself for the transition from being an employee to being a business man or woman. The general thumb rule in this regard is the more business-like you become, the better your business will do in the future.

But first things first it is quite mandatory that you convince potential lenders that is going to have a viable business. In an ideal scenario the quality of your preparation is important; if you go seeking business credit without doing your homework, you will be sent back to the drawing board.

To begin with, it is quite pivotal that you set up a proper business structure, and if you require any licenses, make sure those are in place. In addition also, prepare a business plan, with the aid of an advisor if necessary. More often than not you can use this to show that you have thought about the business: the products, the markets, the competition, pricing, and all the other elements of the business. Apart from all this be prepared to defend your projections for sales, and your estimate of start up and running costs.

Again, it is worth remembering that this has the added bonus of being a good preparation for you, regardless of seeking credit for your business. There is no denying that you will become a better business person for preparing your business plan. Nine out of ten times, that will stand you in good stead as your business grows successfully. Fact remained that planning will become a part of your monthly or annual routine.

If experts are to be believed, another preparatory move that will help you is, in the US at least, getting a business credit profile. There is no denying that this can help you to build up business credit without using your personal credit. In simple terms the benefits in having a business credit profile are many. Most importantly, it is worth remembering that you will have more cash for the business, convenience in purchasing, protection of your personal assets, limiting of personal liability from the business, and the ability to prepare your business for future lending needs.

It is of utmost significance that you become A Good Credit Customer. There is no denying that you will required to buy equipment, services, stocks and other materials for your new business. Un case if you can find vendors who will grant you credit but is best if they are companies who will report your credit history to the major business credit reporting agencies. For example, Dunn and Bradstreet is probably the best know internationally.

As compared to the personal credit ratings, or FICO scores, with business credit scores income or income potential plays an important roll. According to experts the top scores are reserved for the large stable businesses, but with careful and diligent business and credit practice, you too can achieve a good credit rating.

Last but certainly not the least, it is quite important that you obtain A Credit Assessment. Theoretically speaking in order to enter the business credit market, it is best to do a credit assessment. More often than not this will determine if you comply with the lender and credit bureaus requirements. Once you have implemented that, comes the next step of looking for businesses that issue credit without the need for established business or personal credit checks or guarantees. It is worth pointing that once you have transacted business with vendors on credit, you can utilize those references to build your credit profile with the credit reporting agencies.

Fact remained that in many US states, there are non-profit organizations and/or government organizations that will help you with obtaining business credit. Quite a number of time there are loans available for start-up businesses or even government grants. It is quite pivotal that you check your state government, or national government if not in the US, web sites for such organizations.