I have a friend who has started up his own business. Right now it's a one man operation. The problem is, as most businesses, he needs access to capital in order to purchase equipment for installations. Since he's usually on net 90 terms with clients, his cash flow can be a nightmare and sometimes he can't do a job because he can't buy the equipment prior to.
So he wants to get a business line of credit. Unfortunately everything he has looked at looks for a personal guarantee. His FICO is below 500.
He asked a friend about coming on, whose credit is 700+.
My question is, isn't the whole point of getting business credit so that it doesn't affect your personal account?
So... how do you get business credit if your personal credit isn't any good?