Slower is Better when Building Business Credit

This may be one of my least popular posts, but rest assured that it wil be just as honest as all of my others.  I’ll start with a story: If you were to ask me my profession, I would have to say serial entrepreneur.  I buy and sell businesses for a living, and it is one of the most exciting things I can think of doing ith my life.  I also occasionally consult with new businesses.  One consultee I spoke with wanted to start a small retail company, and they sat down with me to discuss the venture.  This person proceeded to tell me about their venture and eventually told me about their financial request: Me: What are your start-up costs Client: About $150,000.00 Dollars Me: Do you have that itemized in your business plan. Client: Not yet, I have it all in my head, I know how everything will be laid out. Me:  When do you need the funding. Client: In about 30 days. Me: What will you do if you don’t

get the funding in 30 days? (silence) I’m going to have to stop the story there, but only to make my point.  Most people I speak to are looking for funding(through business credit or peronsonal credit), and there is never a problem with that, all small businesses need financing.  The main issue is that most business owners don’t give nearly enough time for the financing that they need.  I often wonder why so manysmall business owners fall for the promises of some companies that say they can get $100K+ in funding in as little as 2 weeks.  I wonder why business owners are so excited to give all of their private information to a company that they have information on, or find in a Craigslist ad, or an online forum. Times are hard and I know that many peopel are getting desperate. Business credit can become your funding option of choice but it takes time in most cases. - marc

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Slower is Better when Building Business Credit