William Jordan from Justine Petersen talking about Credit for Startups

Establishing Business Credit for Startups

Mary and William discussed the importance of establishing business credit for startups. William clarified that starting a business does not automatically create business credit, as it requires affirmative actions to establish. He emphasized that business credit is separate from personal credit and needs to be built through a specific process, including opening accounts and paying bills.

Building Business Credit

The discussion focuses on building business credit. William explains that business credit is primarily based on timely payments and is a combination of personal and business credit initially. Mary emphasizes the importance of keeping personal and business finarnces separate, using different institutions for each. She also highlights the need for an Employee Identification Number (EIN) when opening business accounts, rather than using a personal Social Security number.

Improving Personal Credit Scores

William and Mary discussed personal credit issues and how to improve them. William suggested using credit builder loans to establish credit for those with no credit history. He also recommended seeking free services like those offered by Justine Petersen, funded by the Small Business Administration. Mary emphasized the importance of paying on time, even if less than the minimum is paid. William further advised on how to improve credit scores for better interest rates on loans, such as becoming a homeowner. He also highlighted the difference between car and house credit scores. Mary ended the conversation by encouraging new business owners to consult a credit counselor.

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https://calendly.com/businessriff/15min