Stop Using Personal Credit
If you already have a well-established business with a good track record and are in need of a loan for expansion or any other reason, you will want to avoid using personal credit to secure that loan and, instead, use the business and its credit as collateral. This is a good idea for several reasons. Number one, if your personal credit isn't as good as it could be, using your business as collateral could give you a much better chance of being approved for a loan, or a better chance at being approved for a loan for a higher amount.
In addition, establishing and building a good corporate credit history in this manner will help your business in the long-run. However, if you use your business credit to apply for a loan and cannot repay it, it will reflect upon your business credit, leaving your personal credit unharmed. Therefore, it's a good idea to use the business as collateral rather than your personal credit whether your personal credit history is good or bad - either to protect your good personal credit, or to improve your chances of being improved for a loan if your personal credit is bad. Not only is it good to use your business for personal credit protection and to help build up your business credit history even more, it's also helpful in maximizing the amount you'll be approved for in a business loan. With good personal credit, you may not be able to get as much out of a loan as you would with good business credit.
You can build business credit by contacting professional services. Begin by searching the web for “strong business credit” (just like that in quotes), type this into google and/or yahoo.
Good Luck!
Sincerely,
Ilya Bodner
Small Business Owner
For Real Business Owners, Real Success Stories = www.initialunderwriting.org/testimonialrec.html
Over the course of the last 5 years as an entrepreneur I have successfully launched, managed, and sold off several businesses. Each organization started has added some value to my understanding of the business world today. My philosophy has been that 9 things out of 10 that I try will fail, but that golden one is always worth the battle. In my experience that has proven to be the case and my successful businesses still operate today under the management of those whom I have sold off to. The latest project is Initial Underwriting Group, a corporation comprised of two concepts: 1) business credit building and 2) business loan underwriting.
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