Building Business Credit
Introduction
Building an excellent business profile is the first step to removing the need for a personal guarantee. It’s a good practice if you want to get money for your business. The whole process is just like building your own personal credit, but the most important point to remember while you are doing this, is that you have to keep your business credit separate from your personal credit.
Personal Credit
It’s always a good idea to check your personal credit on a regular basis to make sure it is in good standing. Spend this critical time, and possibly money, to repair it while you are building up your business credit profile. Plus, you must keep your personal credit separate from your business credit so that you can start to grow the creditworthiness of your new business venture without it having an impact on your FICO scores. The opposite is also true, if your business starts to stumble, or worse, fail, the negative change in your creditworthiness will not be reported to the three personal credit bureaus.
Money
Creditors don’t want to lend money to businesses in need of it, so start building your business credit profile today. You will save money since your good business credit will mean lower interest rates on business loans. Also, building business credit is a great option for getting money to start your small (or large) business as well. Most business owners want to be able to get money whenever they need it for expenses without having to provide a personal guarantee on the loans being applied for. Finding the money for your business can be difficult unless you know the process.
Loans
When it comes to business loans, you want to eliminate personal guarantees that you use for your business. You can learn to establish a strong business credit rating and get loans for your business without using your personal credit. This holds true even if you had a previous business bankruptcy or if your personal credit is really bad. The mistake many, many business owners make is using their social security number when they apply for business credit, leases or loans for their companies.
Financing
For first time business owners that are trying to build their “new credit” in the business world, they are finding good business credit is the only way to get financing for their company. Avoid the obvious mistakes that prevent most businesses from being successful in getting the credit and financing they need. Many owners are turned down when they apply because they haven’t taken the unavoidable time to set up their business credit structure properly.
Educate yourself. Learn about the business credit bureaus. Understand how they work so that you can get the most benefit from them.
Conclusion
There are specific steps to building business credit and it is imperative your business establish its credit correctly. Business credit is the most important and well known wealth building tool. It is a snapshot of how a business handles its financial obligations and relationships with its vendors as well as its suppliers, showing not only the business’s “ability” to pay, but its “willingness” to do so. Therefore, the time for building a good business credit profile is before you need to use it.
Posted in start a small business
Thanks – that’s a great compliment. In the next few weeks I will be adding more information to this site to help people with their business credit building. I also have another website that helps business owners create a professional website – for free. If you have a few minutes, take a look at it. I think it may be beneficial to you. http://www.WebsiteOnAShoestring.com
Hi! Your post rocks and is a time saver!
Thank’s 4 A Nice Read I heard Credit Report For Free is definitely a quality website to get my credit & get my score for free. Has Anyone else used it?
Everybody dreams about getting out of their JOB, but it’s tough if you don’t know where to get the money for your “dream”. You book has some great guideline on how to get money. Thank you.
Thanks for the credit repair guide. I will be using it a lot. I’m also looking at trying to start an internet business so I probably should get your book on business credit too so I don’t have to pay for everything out of my pocket.
Your book’s lesson was a “A, Ha” moment for me. Thanks so much!
I just recently got a $10,000 business credit card by following the same steps showing in your new e-book. I did have good credit because I’ve been cleaning it up for the past year or so. It was well worth it.
I purchased your business credit building book and I got the free credit book from this website. I like the idea that you are willing to help people get out of struggling financially without charging an arm and a leg.
I’m going to comment on this article too. It really is not difficult to get business credit, even in today’s economy. As long as you understand the “secrets” of building a credit profile, and follow the “rules” then you can stop using your own money.
Appreciate the free book.
I got rejected by banks before for a biz credit card, and now I know why. I’m getting your book so I don’t have to keep using my own credit cards.
Thank you for the informative articles you are posting on your website. I just read your second one and it’s just as good as the first one.
I needed the credit repair book bad….. Tks for giving it free.
I’m working on my business credit profile, and thanks to your book, I now know the “right way” to do it. My personal credit was already good, but I’m giving the free credit repair guide (that you gave as a bonus) to my friend who’s credit is really bad and needs fixing. She’ll appreciate the great sample letters that are included in it.
GREAT BOOK! THANKS FOR FREE ONE TOO.
I got both the business book and the credit repair book. They are easy to follow, which is way better than some of the ones I’ve bought in the book stores. Thanks alot.
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You article is helpful. Are you going to post some more?
I was looking for help getting business credit and I couldn’t understand why I couldn’t get any. Now I understand. Thanks for the tips, and the free credit repair guide.
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I bought your Business Credit eBook and it is perfect for what I need. Thanks for making available with the free bonuses.
Thanks for the free bonus. I’m starting with that, then I’ll get my business credit started.
I like your website. It’s got good info.
Establishing business credit for my home based business has not been easy for me, but now that I have your eBook I know I’m on the right path – with the right tools. Thanks.
Thanks for waking me up about separating my personal credit from my business credit.