#78. Business Credit For Trucking Companies

Most people can't start a trucking company without using credit. There are both similarities and differences between personal credit and business credit, we'll cover some of the nuances. If you want to learn more about how business credit works, some of the pitfalls to avoid, and steps you can take to help establish good business credit, this is the episode for you.

Craig and I try to shed some light on this confusing and often misunderstood subject.

What To Expect From Episode 78

We bring on a couple of business bankers, Jaron and Rob, as guests to explain some of the specifics of business credit. Here are some of the questions we answer:

• What do lenders look at when making a loan decision?
  • Brand new companies
    • Owner's personal credit
    • Owner's experience in the industry
    • How beneficial is a business plan
  • Existing companies
    • Years in business
    • Financial statements (How important is it that they are clean and organized)
• What has the biggest effect on the interest rate you get?
• Do businesses have credit scores?
• Do you need to establish business credit like you do personal credit?
• How do you establish business credit?
• What is a personal guarantee and can you get a business loan without one?
• What is a Dun and Bradstreet Number and is it important?
• What are the most common types of credit that are helpful to trucking companies?
  • Equipment loans
  • Fuel credit
  • Trade credit
  • Lines of credit

Impact Tip

Don’t make late payments, EVER! Not even after the due date, but before the grace period. Just like with personal credit, your payment history has a big impact on whether or not a lender will lend you money. Making your payments by the due date every time builds trust with lenders. It helps them see you take making your payments seriously.