Corporate Credit

Obtaining Corporate Credit

The old adage that “There’s no free lunch” is as applicable to obtaining corporate credit for a Nevada corporation as anywhere else.   There are many incorporation service providers, who, in order to entice a customer to purchase their services, will offer a “free credit card!” or proclaim “obtain $50,000 in credit!”.  Common sense dictates that a lender to a corporation or a credit issuer will not issue credit to a new corporation without proof of creditworthiness or a guarantee of the debt by an officer or owner of the corporation who is creditworthy.   A corporation must earn its creditworthiness just as an individual must.

Often, these promotions will offer to issue a new corporation a “credit card” with no proof of creditworthiness.  Close examination, however, usually reveals that the credit card is one issued by the incorporation service and can be used only for products and services offered by the incorporation service such as books, seminars, etc.or the card is a debit card, pre-paid card or secured card.  None of which is a credit card.

Dun and Bradstreet offers any new Nevada corporation a  number by simply filing for it at their website. This number is the credit “ID” of the company and helps the company to establish its own credit identity.  It allows a creditor to examine the credit history of the company when considering the granting of credit to it.  For any corporation that is considering building its own creditworthiness, obtaining this number is an essential step toward that goal.