Corporate Credit For Your Small And Home Based Business
July 16, 2008
Business Credit is often ignored as a major source of financing for a small or home based business. Many “experts” will tell you about the ways to get money from your home equity, retirement, personal savings etc., to fund your business. In fact, business credit is, the capital required to conduct business. Business credit is perhaps one of the most, if not the most, sought after wealth building tools on the planet. Smart business people resognize the incredible leverage a line or several lines of business credit provide.
Business Credit is convenient as well as flexible. It has been, in my experience ,a way to manage cash flow with ease. It represents a long-term finance solution to help me effectively manage my daily cash flow needs. Without good business credit, growing my business would be terribly difficult.
Nevertheless, when building your business credit, there are crucial steps which must be followed so as not to jeopradize your company’s credit file for years to come. Your profile needs to be established properly,and maintained. Most of the steps involved in this process take time but there are ways to accelerate the process a bit. Nevertheless building true corporate business credit is a process that takes careful planning, preparation, and action. The rewards however are immense.
There are several companies that offer to implement this process for you at the cost of thousands of dollars; however you can actually do it yourself. For small or home based business owners who are just starting out or who simply want to build corporate business credit, having to come up with thousands of dollars to build business credit may not be practical.
Why Business Credit:
Business credit establishes credibility.
Your company’s finnancial health can be determined by a lender who may be making a determination about extending a loan. This can be especially important when you wish to expand, and may not have the cash available.
Once your business credit file has been established correctly, and correctly maintained, you will have access to the funds to grow your business that in almost no other way you would have had access.
Points of Consideration:
Lenders typically lend only so much to a new business, and they ordinaarily do not grant loans to start-up, or home based businesses that seem to them to be risky.
Just staying in business past the first two years will improve your business credit outlook. Building your business credit is a process that will evolve over a period of time.
Finally you can actually have a solid credit foundation for your business within 90 -120 days. I was able to do this on my own with a corporation that I started from scratch. My results? Within 120 days I had several lines of credit and within another month, an unlimited line of credit from American Express.
This has allowed me to do things that I could not have done otherwise, and this started off as a home based business. So do your due dilligence and go and grow your business like the big boys.
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