4 BIG reasons you can't afford to ignore business credit
Updated: Sep 19, 2019
Having access to money and credit for your business ultimately determines your businesses success or failure according to the SBA. Unfortunately, according to Enterprenuer.com 90% of business owners know nothing about business credit, and ironically about 90% of businesses in the United States that open end up failing and closing their doors for good. So for those business owners not aware or sure why they need to establish their business credit, here are 4 BIG reasons why. REASON #1: BUSINESS CREDIT IS ONE OF THE QUICKEST AND EASIEST WAYS TO GET MONEY TO RUN YOUR BUSINESS!
Businesses need money to operate. Sometimes that money can be difficult to come by. Business credit can provide a quick and easy way to get the funds needed for a wide variety of business scenarios, with minimal fuss and effort.
REASON #2: BUSINESS CREDIT IS CHEAPER THAN PERSONAL CREDIT.
Ever wonder what it takes to get the REALLY good interest rates on loans, even when you’ve got bad credit?
I’ve got two words for you: Business Credit!
What does this really mean to you? Let me explain...
If a person isn’t using business credit, they are probably using one of three things to finance their business venture...
1. A credit card 2. A home equity loan 3. A unsecured personal loan
REASON #3: HAVING BUSINESS CREDIT WILL HELP TO DRAW A CLEAR DISTINCTION BETWEEN YOUR PERSONAL FINANCES AND THOSE OF YOUR BUSINESS.
There are many, MANY reasons to separate your personal finances from those of your business. Above we mentioned just one of them. By using your personal credit to finance your business venture, you are putting your personal credit and possibly even your home at risk.
REASON #4: THE COST OF DOING BUSINESS WILL BE LESS IN THE LONG RUN.
Business credit can be cheaper than personal credit. This makes the cost of operating your business less. But it goes further than that. Establishing business credit now will make sure you have the best interest rates on the best loans when you need the