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.
Deciphering Small Business Credit Reports
5 Things to Consider When Using Business Credit Cards for Personal Use
Accounts Receivable Financing and Purchase Order for Individuals with Bad Credit
401K Financing and Securities-Based Financing for Individuals with Bad Credit