Case Studycredit for your growing business
As your business grows, so does it’s need for working capital. We can help you build a business credit profile and help you get approved for business funds, so you can get back to doing what you love.
Why Business Credit?
Business credit isn’t something many entrepreneurs think of when starting or growing their business. Business credit is something every business needs. Business lines of credit allow you to add inventory, expand your operations, hire more staff, unexpected expenses, and more. Our business credit experts can help you step-by-step develop a business credit profile to gain access to business credit like of up to $100,000 or more.
Our 2 Step Process
in-depth business evaluation
The first step we take is an in-depth evaluation of your business, it’s assets, current financial status, and business funding potential. This allows us to determine the best solutions for your particular business. Our solutions are highly customized to your organization. Whether it’s business lines of credit, business loans, or other financing solutions. Rest assured our team knows how to provide you with the right result.
personalized action plan
Once we determine the best financial vehicle and/or process for your company, we then guide you step-by-step through the action plan to acquire the capital your business needs. Our dedicated account manager is there to save you time, effort, and money. Your account manager will guide you through the proper steps of acquiring funds, answer your questions, and help you build valuable, reusable business credit.
One of the many challenges that small business owners face is a lack of working capital. You may have big plans for your business, but if those plans need the money that you don’t have, your plans are not going to come to fruition.
This is where business credit can help you open the doors to a whole new range of possibilities. It’s going to take time to build business credit, but it’s time well spent. When you have access to business credit you can implement plans and ideas that would normally be impossible because you lacked the money to do so.
Instead of trying to figure out how to fund a project and worrying about trying to accomplish your goals on a limited budget, you can instead focus on doing what it takes to help your business to grow and thrive.
Business Credit Will Help You To Separate Your Personal And Business Finances
When you first start a small business you will probably be tying a lot of your money up in it. This can include using your savings as well as taking out personal loans to help get your business off the ground.
It may make you uncomfortable having to put your personal finances at risk when you start a small business, but this is generally something you won’t be able to avoid. The good news is that once you’ve established your business, and have earned sufficient business credit, you should be able to get access to credit without having to sign a personal guarantee.
Being able to separate your personal and business finances can help to insulate you in the event that your business fails. Having a business fail is distressing enough, but if that failing business causes your personal finances to suffer, then it’s even worse.
When you have business credit that doesn’t require a personal guarantee, this is just a little peace of mind that can help you to operate your business without having to worry about having your personal finances impacted.
How Do You Get Access To Business Credit?
Unfortunately, you can’t just go to a bank or other financial institution, tell them that you run a business, then expect them to write you a check.
There’s a bit more to the process than that, but once you understand how it works, you shouldn’t have any trouble getting the business credit that you need.
So, how do you get started?
Register your business.
If you want to be able to borrow money for your business you’ll need to register it with the Secretary of State, this process often involves setting up your business as a Limited Liability Corporation.
Request an Employer Identification Number from the IRS.
Open a business checking account.
Get a phone number that is dedicated to your business.
How Can You Build Business Credit?
After you have taken the necessary steps to establish your business and make it eligible for business credit the next step is working to build that credit.
Building business credit is a lot like building personal credit. After you have established your business and built a good credit history you’ll get access to more favorable lines of credit that have higher limits and lower interest rates.
How do you build business credit?
- Start out by working with vendors that report to credit bureaus.
- Make sure that you pay all of your bills on time. Being late on payments will cause a lot of damage to your credit.
- Get a business credit card and pay the bill on time each month.
That’s a simplified explanation of what you need to do, but it gets to the point. You need to work with vendors that report to the credit bureaus, and you need to utilize business credit and charge cards responsibly.
If you can do this you can help to build business credit that can help you to help your business to take the next step.
What Types Of Business Credit Are There?
- Installment accounts. An installment account is a basic business loan. It’s a loan you take out to cover expenses, make purchases, etc., then make a monthly payment on it until the loan is paid off.
- Revolving lines of credit. These are lines of credit that you can access when needed as long as you stay under the maximum credit limit, and make your monthly payments. The most common type of revolving credit line is a business credit card.
- Charge cards. Charge cards are similar to credit cards but at the end of each billing cycle, you have to pay the full balance on your account.
- Vendor accounts. These are accounts where a vendor provides you with the product, then at the end of a grace period, you pay for the products. This can be useful to help you get merchandise to sell when you don’t have the cash on hand to pay for it.
Being Proactive When Establishing Business Credit Helps To Maintain Your Flexibility
Maybe you’re the type of person that doesn’t like to use credit, or you feel you have more than enough cash to bankroll your business, it still makes sense to establish your business credit as early as you can.
The last thing you want is to have a need for more working capital and not have a means of getting it. If this happens the growth of your business could stall, or in a worst-case scenario, your business could even fail.
There are many advantages to having good business credit, and as long as you use it responsibly there are no real disadvantages.
So, if you are a small business owner that is just starting out, do yourself a favor and take the necessary steps to obtain the business credit that you will need to help your business to become a success.
By being proactive today and planning for the future, you can ensure you’ll have the business credit that you need to help keep your business on the path to success.
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“I’m very thankful for The Credit Agents. They were able to get my business 50K in funds that allowed me to take on a large project.”
Roman Torres, RJT Construction CEO