I didn’t really think I had any other options and besides, my business was making a big SUCKING noise and needed to be fed. I’m sure most entrepreneurs can relate!
Fortunately I was able to sell the business at a profit a couple of years later, but I was amazed at the negative impact the experience had had on my own personal finances not to mention the emotional toll it took. Even though I now had a lot more cash in the bank, my FICO score was significantly lower, my credit card interest rates had skyrocketed and I had lost years of compounded interest in my retirement accounts. I never wanted to repeat that scenario again and vowed to understand the secrets of business financing going forward.
Among the many funding strategies I’ve discovered over the years and have incorporated into my arsenal of business building tools is business credit financing. Establishing a business credit foundation when starting or growing your business is extremely important and allows your business to borrow money or establish credit lines on its own merits without having to personally guarantee, collateralize or co-mingle your own personal finances.
Building TRUE business credit involves:
1. Building a PROPER business credit profile with various credit bureaus.
You can leverage your tax ID number so that your business has its own credit profile with the various credit bureaus such as Dun and Bradstreet, Experian Business and Equifax Business. This is important for disassociating your personal finances from your business.
2. Establishing trade credit lines in your business name so that OTHER businesses are extending payment terms to you. This helps to immediately improve cash flow and allows you to now season your credit profile with a history of purchases and timely payments by your business.
3. Building a Paydex credit score for your business between 80-100 which is essentially the equivalent of perfect credit. It’s like having an 800 FICO score!
4. The ability to obtain Visa and Mastercard and other lines of credit from financial institutions solely on the merits of your business. This will give you cash on demand. Think Donald Trump uses his own personal credit to finance his real estate empire? Think again!
The advantages of establishing business credit are tremendous! Not only will it help to immediately improve cash flow, you’ll have financial resources at your disposal when you need them most. You’ll protect your personal financial assets, your business “stature” will be elevated and strategic partners (as well as potential investors) will be more inclined to do business with you when they see you have good credit.
What would having business credit completely separated from your personal credit mean to you? Click on the link below to find out!!
Our team actually builds good credit FOR you and will help you access up to $50,000 in business credit – GO NOW to http://www.ProsperityBusinessCredit.com. THIS MONTH ONLY – Receive 20% off the current price! Use coupon code “20 OFF” when signing up.