You’re predisposed as an entrepreneur to enjoy a higher level of risk than the normal individual. Do you, on the other hand, appreciate the excitement of business and investing so much that you’re willing to take the following risks:
Are you being pursued by creditors?
Will you be declaring bankruptcy?
Have you been turned down for a mortgage?
Are you paying more interest on your loans than you should?
Are you on the verge of losing your home?
This could be the most important report you’ve read in a long time if you replied “no” to one or more of these questions.
Because, if you’re like the vast majority of entrepreneurs, investors, and business owners I’ve met over the last 28 years, you’re likely to face all of these horrifying issues.
And it’s all because of your company.
When it comes to financing the launch, operation, and/or expansion of their enterprises, most entrepreneurs make one or more financially disastrous mistakes. Most of the time, they are unaware that they are committing a mistake.
To be honest, even when they understand they’ve made a mistake, they delude themselves into believing the penalties will be mere annoyances.
Until they can’t get a mortgage any longer. Or they can’t get the unbelievable finance on the new car they want. Alternatively, they may be pursued by creditors and forced to declare bankruptcy.
And it’s all because they’re using their personal funds to start or expand their business. They then pay for business expenses with personal credit cards. If you own a business or are considering starting one, you will need business credit.
Let me clarify. Most business owners are unaware that they may obtain business credit, and even fewer are aware of how to do it. Owners would no longer need to use their personal cash for start-up capital or working capital if they took the time to educate themselves about building credit.
They’d also be able to use corporate credit cards that don’t affect their personal credit scores because they don’t report to their personal credit reports.
However, obtaining unsecured business lines of credit is the most crucial purpose of company credit, which may be accomplished if the business credit profile is correctly set up. When a company secures unsecured commercial lines of credit, it has the working capital it requires to establish or expand a firm. The owner of the business has chequebook control and can use the business lines of credit as they see fit. The nicest part is that the business lines of credit do not appear on the owner’s personal credit report.
There are a number of banks that will lend to brand new start-up businesses if you have built up your business profile correctly. That’s correct, a brand new start-up company with no prior experience. Banks will provide unsecured business lines of credit so that they can get the start-up money they need to establish their dream company.
Make no mistake about it: every business owner requires business credit. Finance or fund your business without putting your personal assets in danger!