3 Reasons Why You Should Stop Using Your Personal Credit to Fund Your Business 🙅‍♂️

Business credit is your secret weapon to success. It can help you get approved for loans and lines of credit, negotiate better terms with vendors, and enhance your business reputation.

💡 Did you know?

Businesses with good business credit qualify for lower interest rates on loans and lines of credit, which can save them thousands of dollars over time.

3 reasons why you should use business credit instead of personal credit to fund your business:

• Protect your personal assets. 
• If your business defaults on a loan, your personal assets could be at risk. However, if you have business credit, your personal assets are typically protected.
• Keep your personal and business finances separate.
• This makes it easier to track your business expenses. This decreases headaches and saves time when you’re ready to file your taxes.
• Build a better business credit history. 
• The longer your business credit history is and the more positive it is, the easier it will be to get approved for loans and lines of credit in the future.
  

Here are a few tips on how to establish business credit:

1. Get a business credit card.

• Business credit cards are a great way to start building business credit. Just be sure to choose a card that has no annual fee and that reports your payments to the major business credit bureaus.

2. Open a business line of credit. 

• A business line of credit is similar to a personal line of credit, but it's specifically for businesses. You can use a business line of credit to finance a variety of business expenses, and you only pay interest on the money you borrow.

3. Get a business loan. 

• Business loans can be used to finance larger business expenses, such as equipment or real estate. However, business loans typically have stricter requirements than business credit cards and lines of credit.
  

Have questions about investing in the future of your business by building your business credit? Comment below!