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Category Archives for Business Credit

Myth #5: Business Credit Limits and Loan Amounts are Smaller Than Consumer Credit.

When we think of business, we try to associate items in our personal life with our business life. When it comes to accessing credit and funds available, the world of business is a lot different than the world of a consumer.

Limits on business credit accounts are notably higher than consumer cards. A business owner can secure credit cards with $10,000 limits even after having a business credit score for only a few months. This is impossible to accomplish with personal credit.

And with 5-10 accounts reporting on the business credit report, a business owner can qualify for multitudes of business credit cards with limits of $10,000 or higher. A business owner can build massive amounts of business credit much, much faster than consumer credit. And the interest rates and incentives are similar, if not better on corporate credit than consumer credit.

There has been much news recently about the record incentives that corporate credit cards are currently offering business owners. These incentives are so good that corporate credit commonly has higher limits and better terms than most consumer credit accounts.

Another business credit myth is that if a company pays all its bills on time, its credit history is strong and in good standing. Unfortunately, while paying bills on time is important, your timely payments only help your credit rating when your business works with creditors who report the payments to business credit reporting agencies.

The secret to business credit is to locate and work with the vendors and merchants who work with the appropriate business credit reporting agencies. Over 90% of trade-credit is not reported to the business reporting agencies. So even if you have many accounts set up with vendors, you still might not have a business credit score, or profile established.

Don’t let ignorance cost your business money. We provide you with an easy step-by-step system to build business credit through our cutting-edge finance suite platform. You’ll be guided through the process with your own business advising team that will help you with all aspects of building your business credit.

We offer a free business credit consultation for anyone who is interested in business credit with merchants. Give us a call and see if we can help 888 5 BIZ CREDIT.

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Myth #4: The Credit Isn’t Real Credit With Real Merchants, or Creditors.

The reason for this myth is that although most major merchants offer business credit, most do not promote the fact that they offer it. There is no reason for a company to advertise they have credit where the applicant has no personal liability.

For instance, Home Depot offers a commercial credit account. But in almost all cases, the applicant must be willing to provide their social security number when applying and is willing to take on the personal guarantee for the debt. So, it doesn’t make sense for Home Depot to then offer the applicant a card with no personal liability if the applicant is willing to sign and give that guarantee and accept the liability.

Yet Home Depot does offer business credit with no personal guarantee, even though they don’t advertise it. Many merchants are the same: they offer business credit but don’t promote the fact that they offer it.

Business credit with no personal credit check or guarantee is available through Lowes, Home Depot, Office Max, Staples, BP, Shell, Wal-Mart, Sam’s Club, Costco, and thousands of other major merchants. But you’d never know it if you didn’t investigate it carefully.

Don’t let ignorance cost your business money. We provide you with an easy step-by-step system to build business credit through our cutting-edge finance suite platform. You’ll be guided through the process with your own business advising team who will help you with all aspects of building your business credit.

We offer a free business credit consultation for anyone who is interested in business credit with merchants. Give us a call and see if we can help 888 5 BIZ CREDIT.

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Myth #3: Business Credit and Personal Credit Are in No Way Related

Business credit and personal credit use different tax ID’s (EIN and SSN) they still have a relation between each other. From our last busted myth, while using your personal credit for business use is a bad idea, we can’t exactly separate business credit and personal credit completely. In many cases, especially when starting out with business credit, an owner of the company will be required to provide a “personal guarantee” for the business credit loan or line of credit.

When providing a personal guarantee, the company extending credit will not only check your business credit, but will check your personal credit history. While the business account won’t show up on your personal credit report, the personal guarantee could eventually affect your personal credit in the event that the business fails to meet its obligations.

Obviously, you should aim to avoid that scenario (and certainly can) by careful planning and smart use of business credit. Don’t let ignorance cost your business money. We provide you with an easy step-by-step system to build business credit through our cutting-edge finance suite platform. You’ll be guided through the process with your own business advising team who will help you with all aspects of building your business credit.

We offer a free business credit consultation for anyone who wants to understand how they can use their business credit different than their personal credit. Give us a call and see if we can help 888 5 BIZ CREDIT.

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Myth #2: It Doesn’t Hurt to Use Personal Credit In Place of Business Credit

A lot of companies will tell you to use your personal credit because that’s all they know. This is a problematic way of thinking that can lead to big problems down the road.

Using personal credit for business purposes puts your personal credit at risk for the sake of your business. Plus, when thinking about your business and financials, you NEVER want to mix and mingle funds, especially when the IRS comes knocking on your door. Using your personal credit can lead to a mixing of funds and pierce the corporate veil you set up for your business.

By using personal credit for business, you limit the resources available to you personally and to your business, and the end result could be disastrous. Imagine when your business credit needs to exceed your personal credit capacity–and when YOU need to use your personal credit and can’t because it’s been tied up by your business.

No matter how you spin it, in the end using your personal credit for business is a bad idea.

Don’t let ignorance cost your business money. We provide you with an easy step-by-step system to build business credit through our cutting-edge finance suite platform. You’ll be guided through the process with your own business advising team who will help you with all aspects of building your business credit.

We offer a free business credit consultation for anybody who contacts our office. Give us a call and see if we can help 888 5 BIZ CREDIT.

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