Why business credit is a must for every entrepreneur
Entrepreneurs tend to be more open, to taking risks compared to the person. Are you willing to take a leap because you enjoy the thrill of investing and running a business?
Do you have creditors bothering you? Are they saying you’re in trouble?
Did your mortgage application get rejected? Are you paying interest on your loans? Could you end up losing your home?
If any of these questions resonate with you this report could be quite significant.
Many entrepreneurs, investors and business owners I’ve met over the 25 years have faced these challenges.
Your business is, at the heart of it all.
When it comes to funding their business start-up, operations or growth entrepreneurs often make mistakes without realizing it. Even if they do recognize their errors they may convince themselves that the consequences will be minor – until they face a mortgage rejection. The amazing financing deal, for their car isn’t an option for them. Otherwise, they might end up facing bankruptcy due to creditor harassment.
The main reason behind this is that they use their funds to kickstart or expand their business with personal credit cards covering expenses. Building and maintaining business credit is crucial in the business world.
Let me explain. Many business owners are unaware of the possibility of establishing business credit. Even fewer understand the process. If they took the time to learn about building credit they wouldn’t have to rely on their savings for startup or operational funds.
By establishing a business credit profile they could also use credit cards that don’t impact their personal credit reports helping them maintain their personal credit scores.
Securing lines of business credit is a goal of building business credit and its achievable with a well-established business credit profile. Once businesses obtain lines of credit they have the necessary working capital to start or expand operations. Owners have control, over how they utilize these business lines of credit within their checkbook limits.
One great perk is that the company’s credit lines do not show up on the owner’s credit report.
Some banks are willing to provide loans to formed businesses if your business credentials are in order. Yes, even a brand-new startup, with no track record. To help them kick off their dream venture these banks extend business credit lines.
It’s undeniable that every business owner must maintain a credit score. Secure financing for your business, without jeopardizing your assets!