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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