Still using Your Personal Credit for Business? The Pros of Applying for Business Credit
If you’re a business owner, you have many things on your plate every day to worry about. The last thing you may want to take on navigating is business credit and understanding not only the process of how to apply but also how to build your business credit effectively and efficiently so you have access to increased lines of funding when you need it most.
Many business owners hardly see the need to add another item onto their ever-growing “to-do” list, especially after realizing that it may not always go their way. Hearing about all of the dilemmas that can come up with underwriting can quickly make the process seem too daunting to take the initial step.
Let’s be honest, navigating business credit is not the most riveting subject to most. So, why bother with the hassle of understanding it?
A few of the pros of business credit is that your personal credit is unaffected by these accounts. This keeps your credit intact and provides separation of personal and business expenses. This means that your personal past late fees, delinquencies, inquiries and more do not need to stint your company’s growth. After establishing your own unique federal identification number, your company would in essence grow legs of its own and be able to apply without the need of being tied to your social security number. And why shouldn’t that be the case? After all, your company needs to be the one with earning potential sufficient to pay off its’ debt.
If this description makes it sound like your company is taking on a life of its own, that’s a great way to look at it. Your corporation takes on the responsibility of earning credit and using that credit responsibly to help it grow; this includes paying back funds on time, not borrowing more than necessary, avoiding incurring tax liens and the list goes on.
You may ask yourself, how is this that different from my taking this on under my personal credit? There are many factors that lead business owners to think that utilizing business credit is the right path for them. Some initial reasons to take into consideration are that business credit grows more quickly than personal, it can help you to get loans down the line and it doesn’t require a personal guarantee or for your credit to be checked. Last, but far from least is because your personal social security number aren’t being used, there will be no negative impact to your personal credit score. As mentioned from the beginning, you have enough to worry about while day in and day out focusing on running a thriving business. Why not have this be one last thing to worry about?
Now back to that annoying sequence of problems that can make the business credit process seem daunting and too overwhelming to tackle. It is true that putting together an application takes some work. Many financial institutions experience a barrage of fraudulent applications (this includes inflated revenue) which cause them to put parameters in place to weed out applications that maybe illegitimate. The Blueprint Group, Inc. offers a unique dynamic where BizArchitects understand your unique business needs and navigate you through the process so that they can forewarn you against any hiccups that may arise along the way. Most importantly, this lets you focus on what you do best, manage and run your business so you can continue to grow and have a need to apply for increased funding for years down the line!
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