Your business values are what separates you from the others! Here are 3 steps for building business values and powerful company culture! Let’s face it
Building Business Credit:
Why Should You Build Business Credit?
The business credit creates a solid and stable business foundation that gets you the status “Approved” Regardless of whether you are a seasoned or new business owners, sooner or later, financing will become one of your most important concerns.
Building business credit is not the same as building a personal credit. As a matter of fact, this is where a lot of business owners make a mistake.
You probably know that your personal credit must be at a specific level if you want to get approved for a new home, car, and etc. The same applies for business credit, but instead of using your personal credit for business purposes, you need to apply for a business credit and take advantage of the business opportunities out there and grow your company.
Here is why you should be business credit:
- The bank can check your business credit profile and based on that profile will get you approved (the approval is not based on your personal credit). The bank will determine the terms of the loan based on the creditvalue of your company instead of you personally.
- You can increase your access to money since loan approvals are usually automatic.
- You can take advantage of great credit terms such as low fees and interest rates.
- You can lower your costs by enhancing the flow of money infusion into your company.
- You can relax and enjoy peace of mind as the business credit has nothing to do with your personal assets, meaning it lowers your personal liability.
These reasons are just a few of the many benefits you will enjoy if you decide to get a business credit. In order to take advantage of them, it is absolutely necessary to build a credit profile and be in a position where you can use more opportunities for both, your business and yourself.
Building Business Credit Rating: Important Tips to Follow
The bank or the credit lenders will usually review this information when it comes to your business credit account:
- The date you started your company
- Information and details on the leaders in your business company
- The number of your managers and employees
- The past financial information of your business, as well as, predictions of future financial behavior.
Building a good credit account or profile results in various benefits for you and your business company. It will help you in securing credit cards, lines of credit, and other business loans you will apply for in the future. In other words, it will help you secure your future financing.
Here are some great tips that will help you build business credit:
- Create your own business profile by incorporating an LLC.
- Get an Employer Identification Number or EIN. This is a number that identifies your company like a social security number identifies you as an individual.
- Make sure you have a copy of all documents and licenses that your company is required to obtain by law.
- Create a website and your own business email.
- Make sure to open a business checking account with a reliable financial institution.
- Build a positive reputation among credits including retail business, vendors, major and small credit cards, banks, and other financial institutions by paying all of your bills on time.
- Limit the credit card use to avoid too much credit and possible complications.
If you follow these steps you will be able to build a business credit foundation that will get you “Approved” for sure!
Building business network of ambitious, smart, and creative people to share knowledge with is one of the best things you can do for your business!