14th Aug 2008
Use Trade Credit to Finance Your Practice Startup
If you have been to the bank and you were turned down, don’t despair. There is another possibility for getting some of the “stuff” you need for startup. The alternative is “trade credit.” In a nutshell, trade credit is using vendors and suppliers to finance your purchase of their products.
For example, you will need office furniture for your startup, so you could head to Staples or Office Max and see if they will give you a credit card. Or, better, go to your local office supply plaee. You might be able to get credit from them without having to get a credit card.
Talk to chiropractic vendors, like table manufacturers and x-ray machine companies. See what kind of credit they will give you for startup.
Yes, you may pay more in interest, but you will be establishing BUSINESS credit, which is separate from personal credit. You could also open a credit card for your business, but be cautious about putting a lot of purchases on it until you are sure you can pay it back.
What I’m really saying is to consider other sources of credit before you go to a bank. Once you have built up a reputation for paying your business bills, you can talk with a bank more confidently, and they feel more comfortable about giving you a loan when they see that you already have a business going and that you are a responsible business person.
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