Build Business Credit 101

The goal of many people is to own their own business. Many people put in countless hours of work and stay up late at night thinking and brainstorming ideas for their own business that in some cases may never exist. The biggest factor that stop people from running their own business is that they do not have the necessary funds to finance their business, and do not know how to establish business credit. If you are ambitious enough, and are guided in the right direction, than starting your own business isn’t as difficult as some may think.

Building corporate credit is a very important part of starting your business, although many people do not find that out until it is too late. A common mistake that business owners make, is that they mix their personal credit and use it to fund their own business. The key to doing this is to keep your business credit and your personal credit completely separate simply because if your business fails you will be protected.

Once you know what you are doing and where to look, this process can be pretty simple. There are companies out there that may even go as far as to give you a loan without any personal guarantee. In addition to this, there are other non-profit organizations out there that can help you build your business credit.

The single most important part to building credit for your business is establishing a business credit line. Getting your own credit card for your business not only gives you a line of credit to work with, but it guarantees that your payments will be reported to credit agencies. Never fill out a credit card that asks for personal information like your social security number, as these are really just personal credit cards.

Having the information on how to get the credit to start your business is one thing, now you actually have to put it in motion and do it. This will not happen overnight. It takes time. Rome wasn’t built in one day. The sooner you get started, the sooner your business can be up and running. Just remember that you keep all of your personal finances separate from your business finances so if your business fails, you do not fail with it.