Every now and then I come across someone that passes a comment like:

·       ‘Creditors do not really care how many employees your corporation has (as indicated on say a D&B report).’

·       ‘No one really checks the taxes (employee withholding etc etc) that your corporation has filed.’

·       …and similar comments.

To me these comments show a certain innocence that is quite appealing. !!

A lesson in history: A couple of years back you did not even need a business LAN line and you could get business credit. I have seen situations where one has opened a corporation (EIN #) and got approved for Staples unsecured card almost straight away. That type of thing soon came to an end as credit became tighter.

After that it was widely accepted that you should have a business LAN line and a few other things in place. The corp would than buy from certain vendors that report business credit and after a few months apply for unsecured credit and get approved no problem. Well now times have changed even more. Why do you think that most people think it is NOT possible to get unsecured business credit WITHOUT PG (using your personal credit)? Does it not stand to reason that even more steps have to be taken to ensure getting business credit without PG.

·       Of course the numbers of employees you show do not make a big difference by themselves BUT they are a part of the larger picture, your business’ complete profile that the creditors look at. That is what we call the business file.

·      Of course there are many searches that will never reveal your companies tax information but there are many databases that do have that information. Plus these days many more banks actually ask for your business’ tax returns even if you apply for certain secured loans. (as a side note: strictly speaking all loans are secured in one way or another, some just more than others).

Creditors/lenders, banks and credit agencies have access to many databases (like CCR etc) that collectively, pretty much have all the information on your company that has ever been recorded. Different companies have access to different databases. As an example, Experian states ‘that they can look into over 100 criterions to come up with your business credit rating’ (refer to the Experian article here). That is just one example. Now does it not make sense to get as much in place as you can, especially if your aim is to get a good amount of business credit, like cash lines of credit without P.G.

In fact the subject of databases is a vast one and I will get into it in later articles. For now do realize that anything that is recorded is stored in databases around the country (in some cases around the world) and different companies have access to different databases.


For a deeper look into filing taxes (and other articles) for business credit purposes refer to my tax article, click here