Even though they've been in business for years, many people don't realize that business credit even exists ... what it is ... and how to establish a business credit file. And they may be wondering why, after so long in business already, they should begin building it now.

Here are '7 Questions Every Business Owner Should Ask Themselves'


1) Does all my business debt show up on my personal credit reports?

2) Have I ever been declined for a business loan or financing?

3) Could I use a business line of credit for working capital?

4) Do I need, now or in the foreseeable future, to lease equipment?

5) Am I currently stuck having to personally guarantee every loan?

6) Would I like to obtain easy, fast approval on credit cards for my business?

7) Do I currently receive the most favorable credit terms from vendors?



There's an unfortunate lack of useful information available on how to finance your business, especially when it comes to building business credit that will allow you to finance, operate, expand and invest ... without putting your personal finances, or your family's very future, in jeopardy.


When you apply for credit for a business, most creditors will pull your business credit report. This credit might have been used for anything in your business ... from credit cards ... to loans ... to equipment.


And what happens if they pull your business credit report and there's nothing there? They'll rely on your personal credit to guarantee your request. If there's no business credit file, they're not able to lend as much credit to your business. One of the main reasons you need a business credit report is the ability to receive more funding.


Here's another reason that you need to build business credit:


to save money!


This is the most important reason. By building business credit you can save yourself and your business money.


Building a strong business credit rating is vitally important to your success. Without it, you'll pay much more (in higher interest rates) for the money you borrow ... if you can borrow at all. In fact, banks - which say they want to help small business owners - actually turn down over 97% of all business loan applications.


They don't make it easy!


How does this work?


Here's an example:


Let's suppose that you need $50,000 for a piece of equipment for your business. Without a strong business credit rating, your bank will use your personal credit only. If you get approved, you'll have in this example an interest rate of 18%. With a D&B report, you can lower your rate to perhaps 10% and you don't have to guarantee the loan with your personal assets.


Here's a quick comparison:


                                              Personal Loan                                            Business Loan
Lease Amount                              $50,000                                                    $50,000
Interest Rate                                   18%                                                         10%
Term of Lease                               60 mos                                                     60 mos
Monthly Payment                         $1,269.67                                                  $1,062.35
Total Payments                          $76,180.20                                                 $63,741.00

Total Savings                                                                                              $12,439.20



By simply building business credit and setting up your business properly you can literally save yourself tens of thousands of dollars! When it comes to the bottom line, you have to be concerned as a business owner.


The truth is ... you don't really have a business credit rating until you start building one!


It's more important now than ever to be pro active and informed on what is required to obtain business financing for your business. I don't recommend anyone to wait until you need financing to start because the business credit building process takes time and doesn't happen overnight.


I encourage you to read the 'Eight Steps to Building Ultimate Business Credit' at http://ow.ly/2AA3


Remember - Success depends upon previous preparation, and without such preparation there is sure to be failure. ~ Confucius




Make it a great day!

Marco

President
National Entrepreneur Club


Marco Carbajo is a business credit and social media marketing coach. His blogs and articles are featured in Alltop, Scotsman Guide, and Entrepreneur Connect. He is the founder of the National Entrepreneur Club, an online membership community that helps entrepreneurs obtain the cash credit and financing their businesses need and increase profits with social media marketing. You can follow him at http://ow.ly/2kkn




Copyrighted and published by Marco Carbajo of UCan2, Inc.

All rights reserved.