What is Business Credit?
Business vs. Personal Credit
Business Credit is very similar to your personal credit profile. A company setup with the proper legal structure such as a Corporation or LLC will be considered a separate entity from the individual owners and officers of the business. The business will have a tax id number which basically acts as the company's social security number. The tax id number allows your company to be uniquely identified out of the millions of other companies that exist.
Business credit gives your company the ability to acquire lines of credit with vendors without the need of a personal credit check or guarantee.
...that the majority of things you're able to acquire using your personal credit can be acquired with good business credit? This includes but not limited to, loans and leases, major credit cards, retail store credit cards, business equipment, company vehicles and much more!
You may be THINKING...
I have good personal credit, can't I just use that?
When officers and owners use their personal credit profiles to obtain credit for a business, they risk the chance of lowering their own personal credit scores in the process. There are two reasons you should strive to avoid using your personal guarantee on business credit. First, to avoid personal liability. If the business cannot make the payments, each individual signer is personally liable for the debt. Second, because credit obtained for a business can affect your personal credit score. This is because your personal credit score is based on several factors, including available credit, the amount of available credit used, late payments, and much more.
Obtaining credit for a business is a process that should be established over time. The older the business, the more options the business will have to build credit and obtain loans and leases without the use of personal guarantees. It is not easy to do this, but it can be done – and we can help you. The first step is to start building the business credit today.
Our program can shorten the average time it takes to build corporate credit from 1 to 2 years to ONLY 6 months!
The Benefits of Business Credit >>>
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