5 Important Reasons to Build
Business Credit Fast
What Does George Ross Say About Funding Your Business....
For Entrepreneurs Who Want to Build Their Business
with Someone Else's Money, NOT Their Own!
Are you and your business running out of money?
Building business credit is a MUST to grow your business in today's
business environment. Do not get thrown off by the term "credit"
and think of debt only. Most successful companies use other
people's people, not their own. Business credit is very different
than personal credit. The reality is that most businesses are
off on their sales projections and underestimate their business
expenses. A double whammy that leads to a problem quickly. Developing
a cushion in your cash flow is key to business success. There
are many other reasons to build business credit fast other
than just supporting your cash flow. Those reasons include:
Separating your personal and business credit. If you have strong personal credit you want to minimize any damage caused by business to your personal credit. If you have bad personal credit this is an opportunity to build business credit.
The creditability and fundability of your business. Building business credit is just like being 17 again with no personal credit and receiving your first MasterCard® with a $500 limit. You will use and build credit to access more. The key is to manage credit. Banks are now looking to how many vendors do you have reporting as a key barometer to determine if they should lend to you.
Does your business look financially naked? If someone checks your company out in the business credit bureaus, two of them you can check for free, Corporate Experian® and Corporate Equifax® (go to http://budurl.com/BizCheck1 and http://budurl.com/BizCheck2). How many vendors are reporting on your business? Two or less sends a message that you may not be very stable. Sounds easy? Only about 10% of all the vendors that grant credit report to business credit bureaus.
A business credit profile is being built on your company without your knowledge. Yes, that is correct. The business credit bureaus reach out to the secretary of states to pull information on the newly formed entity. It really makes sense to make sure the business credit files are built accurately because they are a lot harder to update then personal credit.
Helping your business gain access to more cash lines of credit after a strong business credit bureau has been developed. Those willing to lend cash lines of credit to your business want to see you have developed a track record with vendors first in many cases.
Questions about Building Business Credit? Call NCP at 1-800-351-5111
The 5 Simple Steps to Build
Business Credit Fast
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