As many restaurant owners have learned having a good business credit can be crucial to the expansion or even survival of some restaurants. Here are five ideas that can not only help you build your restaurant business credit but also help you avoid future rejections.
1. Maintain your personal credit rating- many banks based their initial decision on the owner personal credit score so don't forget to pay bills on time, keep a low ratio of debt to available credit and keep your balances under 30% of your limit in your personal credit card.
2. Apply for credit before you need it- soon after you start up your restaurant apply for business credit card or a small bank loan, even opening a store-based credit card line or card from retailers such as Office Max or Home Depot can be extremely helpful.
3. Grow and use your credit- once you establish payment history, request your limit to be increased even if you don't need it right away.
4. Develop relationships with different lenders- as the saying goes don't keep all your eggs in the same basket instead diversify. You can apply for a credit card through a major bank and for a credit loan through a local credit union.
5. Consider all options- there's other options you may want to consider for your credit such as investors, asset-based lenders, or peer to peer landing like Prosper or Kickstarter.
Overall, getting a business credit is much more easier when you don't need it, that's why always do the hard work beforehand, so you can enjoy the rewards later.
1. Maintain your personal credit rating- many banks based their initial decision on the owner personal credit score so don't forget to pay bills on time, keep a low ratio of debt to available credit and keep your balances under 30% of your limit in your personal credit card.
2. Apply for credit before you need it- soon after you start up your restaurant apply for business credit card or a small bank loan, even opening a store-based credit card line or card from retailers such as Office Max or Home Depot can be extremely helpful.
3. Grow and use your credit- once you establish payment history, request your limit to be increased even if you don't need it right away.
4. Develop relationships with different lenders- as the saying goes don't keep all your eggs in the same basket instead diversify. You can apply for a credit card through a major bank and for a credit loan through a local credit union.
5. Consider all options- there's other options you may want to consider for your credit such as investors, asset-based lenders, or peer to peer landing like Prosper or Kickstarter.
Overall, getting a business credit is much more easier when you don't need it, that's why always do the hard work beforehand, so you can enjoy the rewards later.
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