Published By Credit Suite at December 30th, 2015
Imagine having the ability to access $50,000, $100,000, even $250,000 for your business. Now imagine doing this withNO personal credit checkandNO personal guarantee.
THIS is business credit and these are only a couple of the major benefits this type of credit provides.
Your success in business will be determined based on your business credit profile and score. With a good business credit profile, you will have near unlimited borrowing power.
Without having a good business credit profile, it will be a difficult path to success without having access to working capital and funding… because ALL conventional lenders pull your business credit to determine whether you’ll get a loan .
This is why almost all Fortune 500 companies use their business credit to secure funding.
It’s not that they need the money to operate. Successful companies use funding as leverage to grow their business.
One of the many benefits of business credit is that you can obtain funding with no personal credit check. With a strong business credit profilelenders will lend you money based on your business credit, not your personal credit.
This is excellent if you have personal credit issues as you can still qualify for funding. Even with exceptional personal credit, business credit gives you DOUBLE the borrowing power because you can have the consumer cards you have now as well as business cards.
Plus per SBA approval limits on business credit cards are 10-100 times that of consumer credit. This means you can get $5,000, even $10,000 credit limit accounts within 90 days in many cases.
Another great benefit of business credit is there is no personal guarantee required for much of the funding you obtain. This means you can be approved with no personal liability.
So if you ever do default, the creditor can’t pursue your personal assets like your home or personal bank accounts.
Business credit adds more value to your business and gives your business credibility. Stakeholders, partners, lenders, even potential buyers of your business will see more value in your business if you have a strong business credit profile built.
Most important by having a good business credit profile built you have security. It is much easier to run your business when working capital is easy to come by. Any business with a $150,000 credit line available will have a much better chance of growth than if $0 was available.