Many small business owners use personal credit to run their business. However, doing so could put business owners at risk if their business is ever in trouble. As a business owner, one of the most important things you can do for your company is to start building credit for your business.
The security of building business credit is important for any organization. The following are some of the benefits of building good business credit:
- Meet any lending needs
- Prepares for future lending needs
- Ability to extend your cash flow
- Lowers your interest rates
- Saves valuable time and money
- Improves the creditability of your business
If you are a business owner who is not exactly sure what business credit is or why it is important, you are not alone. You are among thousands of business owners who are lost in the maze of how to build a business credit profile. NCH can provide you with what you need to know about business credit so that you feel prepared and confident about your business operations. We can provide you with the answers to:
- Who are the largest business credit bureaus?
- How can I start to build business credit?
- What rights does a business owner have for incorrect information on a credit report?
- What do business lenders look at?
- How do you get a company to grant credit?
- Which companies report to the business credit bureaus?
Business Credit Profile
One of the biggest advantages of having a good business credit profile is saving money. By obtaining a more favorable credit score, you will lower the interest you pay on loans and leases. Learn how to limit the use of your personal guarantee (regardless of your personal credit history) by building a business credit profile. Building a business credit profile allows you to:
- Limit your personal liability
- Protect your personal assets from any business losses
- Eliminate the need for using personal credit
- Purchase vehicles without using personal guarantees
- Access more cash for the business
- Purchase items for business with convenience
- Prepare your business for future lending needs
Separate Yourself from Your Business
Through incorporation, you can separate yourself from your business and protect your personal assets from any business liabilities. While it is possible to build a business credit profile for a sole proprietorship or partnership, you and your family are still personally responsible for all the debts your business may incur. Nevada Corporate Headquarters, Inc., recommends building your business credit as a Nevada corporation or Nevada limited liability company. When you incorporate, you benefit from:
- Protection of your personal assets
- The ability to raise capital and build credit faster
- Lower tax liabilities
- Limited liability of owners and officers
- 100 percent tax-deductible insurance
- 100 percent medical expense reimbursement
- Stock ownership – which makes it easier to transfer assets
- Greater credibility through a corporate image
- Lowered audit risk
Ready to start building your business credit profile? Give the credit experts at NCH a call today at 1-800-508-1729.