Any small business could benefit from building business credit in its name! Read this article and discover the main benefits that come from building business credit!
A lot of small business owners are not really aware that their business can have its own credit rating and credit file separate from their personal credit account, and even fewer know how to build business credit in their company’s name.
In this article, we are going to talk about the benefits of building business credit for small businesses. Believe it or not, there are various benefits to build his credit for your small company. We are going to present you the 3 most important ones:
- Access to loans when the economy takes a bad turn – If you have properly established and built your business credit file, you will be in a better position if an economic downturn takes place. Sometimes it is very important to have access to some financing, especially in tough times, it can mean the difference between going out of business and staying in business.
- Protecting your personal FICO score – If you use your personal account to take more and more credit loans, you are risking of going into a huge debt. This is a bad situation, especially if your FICO score comes to the point of having interest rates grown on your current card accounts as now you seem risky and not so reliable to the lender. But, if you build a business credit file, you will be able to protect your personal FICO score.
- Ready for development and expansion – We know that things may be tough at the beginning, but if you managed to properly build your business’s credit file, your company will be ready to develop and expand by having capital access to finances. There are some companies that offer generous lines to businesses that have built their business credit properly.
Building business credit can be one of the best things you can do for your own small company. Having financial stability means everything in times of need and as we said before, it can mean the difference between staying in business and going out of business. Think about it, and if you decide that building business credit is the right thing for your small business, start now and built an impeccable corporate credit file!
Additional Reading: Building Business Credit: Everything You Need to Know