How to Build Business Credit

People worldwide dream of starting their own business because of the benefits and advantages being a business owner provides. Company owners have more flexibility and creative license than those who work for others. Moreover, such owners have a far greater potential for making significant amounts of money than those who work for others. However, despite the potential benefits and the fact that so many people would love to start a business for themselves, very few people actually realize the dream. Only 5% make it past 5 years and over 50% fail the first year.

There are likely many reasons for people to continue down the career path they are on despite having aspirations of owning their own company, but perhaps the greatest reason is that people sometimes find it difficult to get their business idea going. In other words, it is oftentimes the case that individuals lack the requisite capital to build an establishment from the ground up.

It is no secret that building a business can be risky, and thus many people are justifiably apprehensive when it comes to investing their personal funds into a business start-up – even when it is their own company they are starting. For this reason, building business credit is a critical point to focus on when starting a new venture. With business credit, owners can receive credit for their company without putting their entire personal savings in jeopardy. If more people knew how to get business credit, it is likely the case that there would be significantly more new businesses.

The first thing for new business owners to keep in mind is that business credit is not always the same as personal credit. While it is true that when determining a business credit score, some credit reporting agencies look at personal credit in conjunction with the inherent risk of the venture itself; it is possible to keep the two separate. Business owners should consult with a professional about how to do this and whether it is indeed advantageous to their enterprise.

Another important thing for company owners to keep in mind when developing business credit is that lenders provide credit based on the apparent viability of the enterprise. This means that it is crucial for new business owners to develop a professional and well thought out business plan. In many cases, lenders have nothing to rely on but a business plan, which makes it particularly important for everything to be spelled out as clearly as possible right from the start.

One more piece of advice is something that parallels the consumer credit industry. As with individuals, business credit must be developed. This can be done by building the business credit profile with Dunn & Bradstreet and Corporate Experian®. Caution is recommended as you go through that process. There are numerous mistakes that can be made and the business credit bureaus are not regulated like personal credit bureaus therefore are much harder to fix a mistake. It is recommend to work with an establish company to help build both trade and cash lines of credit for your business. The key is are you willing to understand the reality check of what your business is likely to achieve during this type economic climate? There are solutions, but it is much harder to get large lines of cash for your business then it was two years ago! But it can be done when you approach this subject appropriately!

Adequate business credit will help your business fights the odds to avoid being another failure statistic! For further assistance regarding the development of credit and to receive the “Insiders Guide to Securing Cash and Trade Credit for Your Business”, a powerful 40 page report! Go to www.fastbusinesscredit.com/freereport.html!