How can I get a credit card or loan for my business without using my personal credit history and Social Security Number?

By Pam Newman

Opinions expressed by Entrepreneur contributors are their own.

I own a Gas station in MD and want to get a $20k credit to grow my business. Everyone wants to use my ss number even though my business has an EIN number and is registered with Dun.
There are a couple of things to consider. One is that most lenders will ask you to use your personal assets as collateral for the business loans as well as the business assets. They want this as a double protection for them that if you should default on the loan then they'll be able to use personal and business assets to repay the debt. It is not uncommon for this to occur. If your business doesn't have any history of having a credit card or loan under it's own tax id, then it has no credit history. You can visit with them about establishing the loan or cc in the business name with tax id and then just securing it personally - explain to them you'd like to start estabishing business credit. The overall goal for most lenders or cc companies is that they want to protect themselves.
Wavy Line
Pam Newman is a Certified Management Accountant, author and Certified QuickBooks ProAdvisor for Financial and Point-of-Sale software. She is also president of RPPC, Inc., which provides customized business development services.

Editor's Pick

A Father Decided to Change When He Was in Prison on His Son's Birthday. Now His Nonprofit Helps Formerly Incarcerated Applicants Land 6-Figure Jobs.
Lock
A Teen Turned His Roblox Side Hustle Into a Multimillion-Dollar Company — Now He's Working With Karlie Kloss and Elton John
Lock
3 Mundane Tasks You Should Automate to Save Your Brain for the Big Stuff
Lock
The Next Time Someone Intimidates You, Here's What You Should Do
5 Ways to Manage Your Mental Health and Regulate Your Nervous System for Sustainable Success

Related Topics

Business News

'Do You Hate Me?': High School Teacher Shares Wild Emails He Receives From Students

Jordan Baechler teaches high school students in Ontario, Canada.

Business News

After Being Told They Could Work From Home Forever, Employees Made Major Life Changes. Then, a New CEO Ordered Them Back to the Office.

Farmers Group CEO Raul Vargas is facing backlash for the change, but he says being in the office brings more "collaboration" and "innovation."

Growing a Business

Do You Say 'Like' Too Much? Don't Worry! I'm a Sociolinguist, and I Like 'Like.'

The modern use of the word is denigrated through and through. But it may be doing more communicative heavy lifting than we give it credit for.

Life Hacks

The Top 5 All-Time Best Productivity Hacks You've Never Heard Of

Want to combat chronic procrastination? Use these top five productivity hacks to put an end to this debilitating nuisance.