I worked since I was 18 and worked getting experience at financing needed things to build the best credit profile I could. I was diligent about making all payments early to never have a black mark against my personal credit. I have a score well over 700, but now I was trying to learn how to build corporate credit worthiness. A corporation is an entity unto itself. It is like a person. It has to develop a credit history over time, but it needs to start somewhere. I used my own good credit to get the company established, and now I was working on building the credit profile of a corporation as if it was a young person getting his first loan.
It took a different approach to establish good corporate credit fast. I spent a few years building my credit history. I had paid off car loans and paid down student loans to practically nothing. I had a lot of available credit based on my income and credit experience, and I used a good portion of it to get the company established. Now I needed to pass off the credit to the company. This put my score higher, and paying off the debt with corporate earnings established this entity on paper as a good credit risk. This helped us with capital financing for the things we needed to expand our business.
At first, everything was riding on my credit. Now the company is established as a complete separate entity with its own credit profile. Keeping it spotless takes a lot of planning as we have to rely on accounts receivable to get paid for what we sell to pay our suppliers, vendors, employees and other accounts payable. Payroll and raw materials are our biggest cash takers. However, we are doing well in our venture.