Business Credit—essential To Run Most Businesses

July 12, 2009 - PRLog -- Many businesses struggle to stay open or even expand; they need cash without knowing how to get it.  Many people never begin a business, despite having a good idea, but do not have enough money.  Accessing a business line of credit can change this.

Building credit limits personal liability and protects personal assets from business losses.  This eliminates the need to use personal credit to purchase vehicles for business. Also, businesses gain access to more cash, making it easier for a business to make purchases and pay for day-to-day operating expenses.

Building business credit takes time and careful planning.  What is the key to building business credit?  These accounts must not be connected to or associated with personal credit--they all must report payment history to the “business credit agencies.”

Business credit can enhance the overall success of a company.  By separating business credit from personal credit, the business owner limits personal credit score use.  Begin the process of building company credit upon business opening.  Taking care of both business and personal credit is part of building a good, solid business.  While building a credit profile, a business owner will be able to obtain unsecured business lines of credit without having affecting personal credit.

Get access to capital using business lines of credit needed to build a business.  After establishing a presence with the business credit bureaus, the business will have a score, and it will be eligible for business retail credit cards, trade credit accounts, and lines of credit—without needing either a personal guarantee or a personal credit check.  Once a business obtains unsecured business lines of credit, it will have the working capital it needs to start or expand business.  Best of all, the business credit lines do not report to the business owner’s personal credit report.  

Conclusion

Business credit is the most sought after wealth building tool today.  Business credit is a “picture” of how a company handles its financial obligations to its suppliers and banks, addressing not only the company's ability to pay, but also its willingness to pay.  Therefore, the best time to build your company’s credit profile is before needing it.  It’s just good business practice.

Susan Carter has over 25 years of accounting experience.  She has seen a lot of things to do and not to do over that time and would like to save people time and pain of reliving mistakes.  If you would like to learn more information, you can contact Susan Carter at Susan@SusansBooks.com or visit her website www.susansbooks.com.

Susan Carter
Start With The Basics, LLC
P.O. Box 71481
Madison Heights, MI  48071
Email:  susan@susansbooks.com
Website: www.susansbooks.com

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I am an independent writer. I like to share what I truly believe will help people and create win-win situations.