personal credit vs. business credit

[lovely]

if you have bad personal credit..what effect does it have on acquiring money for a buisness venture?

[que90nek]

if u r a PERSON trying to obtain a business loan....

you may be able to do it WITH PROPER COLLATERAL and a GREAT business plan.

without the collateral...you may be SOL.

[lovely]

what do you mean by collatoral.

house, money. what else?

[Melotic]

Originally posted by lovely
what do you mean by collatoral.

house, money. what else?

More like assets... land or equipment for example...

[lovely]

Originally posted by Melotic


More like assets... land or equipment for example...

and if you dont have those types of things.

[zuriyahe]

I have heard family and friends talking about creating "corporation". Which entitles you to have your own Tax ID (for the corporation) that will be different and NOT linked to your own SS#.

If I were to start my own business, I would greatly consider incorporating myself...
http://smallbusiness.yahoo.com/resources/business_incorporation.html

But as for bad credit...

If a person is linking their BUSINESS to their personal credit...I am sure that their personal credit will work AGAINST any loans...after all, if a person has bad credit...that means that they have a record of being somewhat unreliable... Why would someone risk putting money into a unreliable corporation/person. Then again, I am sure that there are loan companies that will loan money...but it will cost a lot in high interest.

[lovely]

Originally posted by zuriyahe
I have heard family and friends talking about creating "corporation". Which entitles you to have your own Tax ID (for the corporation) that will be different and NOT linked to your own SS#.



this is interesting.

i know i was talking about starting something on the side. the lady that i work with said that the two had nothing to do with each other.

also she said to look for grants and things, as well.