A Personal Guarantee is “by making a guarantee you are putting yourself - and your assets - on the hook, by acting as the loan's cosigner. If your business dissolves, you will be responsible for repayment. Creditors will go after you in the event that your business fails to repay the loan”
Business credit solves the concern. Business Credit is credit in a business name that’s linked to the business’s EIN number. This is credit a business owner can obtain that is not linked to their SSN. This credit can be obtained with no personal liability from the business owner.
• Business credit has no impact on the business owner’s personal credit. When done properly, business credit is obtained without the SSN being supplied on the application.
• This means there is no credit check from the business owner to get approved. This also means that anyone who has bad, even horrible personal credit can still be approved for business credit.
• Business credit reports to the business credit reporting agencies, not the consumer reporting agencies. As business credit is used it has no adverse impact on the owner’s consumer credit because it’s not reported to consumer agencies.
• This means utilizing the account, even over 30%, won’t have any adverse impact on the personal credit scores. And there are no inquires on the personal credit when you apply for business credit as long as you don’t supply your SSN.
Another benefit of business credit is that it more than DOUBLES your borrowing ability. You already have consumer credit, now you can have a whole other credit profile with business credit also.
Plus, per SBA business credit limits are 10-100 times that of consumer limits. Obtaining business credit radically increases your available credit.
Business credit can be obtained VERY fast. You can get approved for initial vendor credit to help your business grow within one week. That credit will typically report within 30-90 days.
Once reported, you will then have reported trade lines, which in turn give you an established business credit profile and score.
Once your profile is established in 90 days or less, you can then start getting real useable revolving store credit cards. Within 120-180 days you can then get real cash credit such as Visa, MasterCard, Discover, and AMEX credit you can use anywhere.
Business credit is perfect for startups and established companies. It’s also perfect for companies that don’t have collateral, which is required for all SBA 7a loans.
Business credit is perfect for companies that have no cash flow to verify, no tax returns to supply, or ones that don’t want to verify this information even if they do have it.
It truly provides a good way to get money for ANY business, big or small, new or established, regardless of the owner’s personal situation.
About the Author - Kim Carpentier is Owner and General Manager of Valley Credit Builders (www.valleybusinesscredit.com). He is using his 35 years of successful business ownership, and transition, to help small business owners build business credit so they can separate the financial responsibilities between business and personal credit. He specializes in helping business owners establish excellent business credit scores and then leverages those scores to access cash and credit for their businesses without their personal guarantees. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.
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