(EMAILWIRE.COM, May 17, 2008 ) Indianapolis, In--It shouldn’t come as a surprise that banks are more than willing to loan money to people with good credit, but shy away from those whose credit is less than perfect. Does that mean the loan one needs for thier small business is doomed? Not necessarily, because bad credit financing does exist.

Pat Gage recently attended a meeting where investors and business owners discussed lines of credit for people with low credit scores. Those who attended the meeting learned about different lenders and different types of programs they offer. There are lenders who are wealthy individuals (often local) who will make loans to local businesses. Finding them takes some research, but they are out there. Then there are firms that specialize in small business loans to those whose credit is shaky. There are hundreds of them across the country, and they can easily be found on the Internet. Pat explained that one does have to persuade them that they are a viable candidate, and accomplishing that requires some work.

Pat explained that the first very important step is to separate one’s bad personal credit from their business credit. This can be done by forming a corporation (S or C) or an LLC (Limited Liability Company) and applying for an EIN (Employer Identification Number). This allows one to begin establishing a business credit profile that’s completely separate from their personal credit. It’s like starting with a totally clean balance sheet.

The next step is to build a strong business credit profile. That means finding suppliers who will report a payment history to the business credit bureaus-Dun and Bradstreet, Experian, and Equifax and be sure you to pay the suppliers on time, while adhering to other sound business practices. Make sure all business information is correct and consistent with all of the business credit bureaus and prepare financial statements for the company. Any potential lender is going to want to see a strong, professionally prepared financial statement; even if a business is a new start up one can put together a financial statement with projections. This is acceptable to most any lender.

Pat concluded his presentation by reminding everyone that they still need to clean up their personal credit. Even though it is separate from business, it is not going to go away and it is still a factor with many lenders’ decision process. One needs to explain why and how their bad credit happened, and what steps they’re taking to correct it. Lenders want to see an honest effort to correct past mistakes and avoid them in the future.

Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com This program works in all 50 states.

Contact:
Destiny Now, LLC
33006 7 Mile Road Suite 423
Livonia, MI 48152

Phone: 734-261-0688
Toll Free: 877-262-0688
Fax: 734-422-6168
Email: info@opportunitycreator.com

Contact Information:
Destiny Now, LLC
Pat Gage
Tel: 877-262-0688
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