subject: Know How to Seperate Your Business Credit From Your Personal Credit [print this page] Know How to Seperate Your Business Credit From Your Personal Credit
The typical business owner starts their own business based off of their own personal credit. In fact, almost 9 out of 10 business owners start up a business that is solely based off of their own personal credit. They make the primary mistake of using their own personal savings to invest into their business, when there are ways to separate your personal credit and receive business credit lines.
The reason that many business owners start their own business based off of their personal credit rather than separating it and using business credit is because many of these business owners do not know that they can do this. If done correctly, a business owner can separate their personal liability from the business. In order to do this correctly, there is an easy path that must be followed in order to establish corporate credit lines if you are a business owner.
I have been in the business of building business credit for people for over 20 years. Most people would say that this makes me an expert in building business credit and in the business credit industry. With my various experiences, I have found that less than 5% of business owners know exactly how to establish business credit. I found this to be astounding. In many cases, many of these business owners want start-up capital to buy real estate and obtain an easy business line of credit.
When speaking to these entrepreneurs that wanted to buy real estate, I mentioned the possibility of obtaining some additional financing that would help them fund their real estate deals or any other business ventures that they had in mind. A problem I noticed that people had, was that there was not enough funding. They knew what to do with the funding; they just were not able to obtain it.
One thing is certain, if you don't establish business credit you damage your personal credit, put your family at risk and dramatically lower the possibly of funding and business success.
One thing is certain, if you don't establish business credit you damage your personal credit, put your family at risk and dramatically lower the possibly of funding and business success.
