The best time to apply for unsecured business lines of credit is when you don’t need them. That way the lines of credit will be there when you need them. If you wait until you need them, it could already be too late.

As a small business you think you have planned for all contingencies but surprises still happen that have a direct impact on company financing. For example, that large lucrative order you have been chasing finally arrives.  Even though you have been working with and on this client for the business, somehow, when it comes you are still surprised and unprepared. You must purchase additional inventory and sub-contract out some of the work to meet the delivery schedule. Although your client is financially stable they will only pay you in 60 days. If they say 60, they make take 90 days. In the meantime, your suppliers and workers want to be paid right away. 

In this situation unsecured corporate lines of credit that are already in place bridge that gap between immediate payables and future receivables. In this scenario, the unexpected expenses could have been paid from the unsecured lines of credit. As these are revolving lines of credit they can be paid down or paid off with company receivables.

Perhaps you determine that exhibiting at a trade show would be beneficial to your business. The trade show or expo is 6 months away and on the other side of the country.

But after calculating all the costs for booth space, promotional materials, freight, advertising, airfare and hotel expenses you feel it will still be advantageous and a financial success to attend the show.

Both of these scenarios require capital outlay before the business realizes the financial benefits of the work. This can only happen if the unsecured corporate lines are already in place. You can’t wait until you get the big order from a client, or a week before the trade to apply for the credit.

Apply for credit and obtaining it is a process, therefore small businesses should establish corporate credit as soon as possible so that it is available when required.
Tantalizing offers for credit come in the mail on a daily basis. One of the biggest mistakes companies make is applying for Visa, MasterCard or American Express credit cards at every opportunity.

Multiple applications do not increase your chances of getting corporate credit cards. In fact, it has an adverse effect because the multiple inquiries show up on the credit report.
Credit card companies see these multiple inquiries as a red flag and in turn deny credit.  Multiple denials translate into fewer opportunities to obtain corporate credit cards or lines of credit in the future.

There is a correct way to apply for corporate Visa, MasterCard and American Express credit cards.  We arrange for business lines of credit in a manner that maximizes the possibility to obtain corporate credit cards and actually build the credit profile of the small business.

By building corporate credit correctly we help you build the financial stability of your small business for years to come.