How Starting Business Credit For Your Small Business Can Mean Better Financial Stability
When you are new in business or if you are looking for ways to manage an existing business, there are some business concepts that you ought to master. One of these notions is building business credit. Establishing business credit takes a lot of effort yet it is crucial for a secure business with financial stability.
Understanding Business Credit
When you want to borrow money from a bank or lenders as an individual, they must first look at your credit report before deciding whether you’ll get the loan or not. Your credit history provides information on previous loans, credit cards, and other financial interactions. The information is used to determine your credit score, which indicates your ability to pay back the loan in a timely manner. When you own a business good personal credit is helpful but building business credit is great.
Just like a personal credit, a business credit compiles an analysis of financial information regarding your business, which lenders use to determine if your business has the ability to generate enough money to pay back loans taken through the business. Most lenders do not overtly demand that you give them your business’ financial records but you are expected to give them voluntarily.
Getting business credit started begins with filing your business information with a credit bureau.
Importance of Implementing Business Credit
Separate credit histories improve your chances of getting a loan
When your business credit history is separate from your personal credit history, you are able to protect yourself from any negative impacts one can have on the other. For instance, if you go through some financial challenges that negatively affect your personal credit score, you can still apply and get approved for loans using the business credit as they are treated as different entities. If your business is new then there are strategies to help apply for a loan and get funding.
Unless your business is a sole proprietorship, you should separate the owners from the business. This is important because the business partners will have limited liability. This means should the business go through a financial challenge such as bankruptcy, the business assets will be used to recover money while your personal assets will be protected.
Banks and prefer lending to businesses with business credit
When you have a business credit score, banks and lenders are usually more willing to lend you money which can be key to growing your business by for instance purchasing new equipment. The records help lenders determine how much your business can afford to pay back and the money you will get as a business is often more than what you would get if you were borrowing as an individual.
Rewards With Business Credit Cards
Other than taking a loan for your business, a good business credit score comes in handy by helping you get business credit cards. Unlike personal credit cards, business credit cards come with many rewards such as cash back on items purchased, airline miles among others. This means that you get to save money for yourself and the business as well.
Prolonged warranty protection with business credit
More often than not, banks will give you prolonged warranty when you purchase items for your business using a business credit card. This will give you peace of mind and save you money because you will have access to essential equipment without stressing about it breaking down.
Tracking expenses with business credit effectively
Businesses are required to file taxes and sometimes they lose out because of inability to account for some expenses. When you use your business accounts such as credit cards, checks, and debit cards, you can easily keep track of such expenses even if you don’t have receipts. This is because you will have access to a copy of the credit card statement every year.
If you have a line of credit for your business or a business credit card, you can buy what you need for your business at considerably low-interest rates. Some business credit cards actually offer 0% interest rate for a set time period.
If you need help in getting business credit started, Tonymel Teach can impact you with exclusive tactics and methods necessary for building good business credit without having to depend on your SSN.
At TonyMel Teach you will get access to user-friendly, state of the art tools that have proven successful to all those who have gone through the training. The service provides you with a full-time advisor team that will guide you every step of the way thus making the learning process interactive and easy to follow through.
When you enroll at TonyMel Teach, you will learn how to properly set up a business so that you match your standards to those applied by credit issuance companies and banks. You will also learn how to initiate setup and activate your business’ credit profile using Experian, Dun & Bradstreet who also give you a free D-U-N-S and Equifax Commercial which is essential for building business credit. You will also learn how you can attain primary trade credit of up to $150,000 at a zero percent rate even if your business is in the startup stage.
If you need to monitor your business credit scores and reports, you will learn how to do that using TonyMel Tech’s assimilated real-time systems with Experian and Dun & Bradstreet, powered by Nav.
You will also get linked with business credit reporting agencies and by doing so, be in a position to borrow between $5,000 and $50,000 for your business.
At TonyMel Teach you don’t just get to learn how to build your business credit, you will also learn how to grow your business as well as personal development. The exclusive methods used will not only make your business a success but they’ll mold you into a better business person.
What are you waiting for? Make your business a priority today and contact TonyMel Teach to find out more.