Published By Credit Suite at February 25, 2016
Some of the largest private companies in the United States include:
Dell, Michael Dell is the CEO
Mars, Paul Michaels is the CEO
Price water house Coopers, Greg Brenneman is the CEO
Publix, William Crenshaw is the CEO
Pilot Flying J, John Compton is the CEO.
Does it make sense that these CEOs personally guaranteetheir business debts?
Dell does about $57 billion in business annually, and has over 83 reported accounts on their business reports with Experian.
With $57 billion in revenue, Dell has an appetite for VERY high credit limits, even exceeding $100 million.
So do you think when Dell needs this type of money and goes to get credit, that Michael Dell personally guarantees the financing and credit that Dell obtains?
The highest amount he’s (probably) personally financed is his home, worth $73.3 million.
So his credit isn’t even strong enough to secure the type of capital the business needs to operate and grow, as they often need and use $100 million +++.
This is actually typical of all large businesses, and many small businesses, the company quickly outgrows the credit of the individual owner, and at some point the business itself has to stand on its own.
This is why they build business credit! Per SBA, credit limits on business accounts are 10-100 times that of consumer credit.
This is because a business has a much bigger need for credit than an individual does.
Loan amounts, and credit limits, are always higher on business accounts than with consumer accounts because businesses make and spend a lot more money than a consumer will.
Join the club! Every highly successful business in the United States has business credit; it’s how they got as big as they are.