Why do 50 % of small businesses fail in their first year and 95% by their fifth year?

Why do 50 % of small businesses fail in their first year and 95% by their fifth year?

The answer is simple: they run out of MONEY!

Whether you’re starting out with great credit or not, you should establish a corporation.  Then you can get secured credit cards to help build your corporation’s credit score.

These cards are issued based on an amount of cash you put into a secured bank account. Once you receive the secured credit card, use that cash to pay bills that you would normally pay monthly, such as rent or the phone bill.  You can use the card to establish buying activity as well as keeping a track record of payments in order to get or increase your scores.

The credit bureaus will then report these types of cards and help you build credit under the business’ name.

Remember, you want your corporation to look good, so when you present yourself to somebody in a future business deal whether it is a lender or another investor, you want to show what credit you already have, and what your scores are for your corporation — not yourself personally. Many will be impressed by that, because not many people can do this.

I built a corporation in spite of this with a little effort and some patience. Then I added two people as credit partners and in one week I received $200,000 in credit.  I did not have great credit, but I brought people on who did, and I was able to leverage their resources to get what I needed.

In business, understanding and utilizing the power of leverage of other people’s resources can get you far ahead of the game. If you have bad credit or you’re credit challenged for whatever reason, you can get a credit partner and build $200,000 just like I did.

So long story short – the answer is yes, you have to have good credit if you are building credit under your name.  If you are building credit under your businesses’ name and following this process, your credit won’t matter at all!