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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