Is Building Business Credit for Real?

Today we are going to dispel the myths associated with building business credit. This much maligned, and in many cases oversold, product is critical to your success as a small business owner.

Many small business owners use personal credit to run their business. Doing so could put you at risk if your business is ever in trouble.   Additionally, many creditors today are moving away from relying on personal credit alone when judging a business’s financial health.   They recognize personal credit is not considered an ideal predictor of business behavior.  Many entrepreneurs with solid businesses wreck their personal credit in order to fund their business. To account for this phenomenon, smart creditors are taking advantage of new blended commercial scoring tools that integrate both personal and business credit attributes to assess and predict small business risk. 

The reality is you can turn your entity in to a living breathing thing with a real live credit score. In many instances it can obtain credit all by itself. In others, having a good business credit score coupled with a good personal credit score, can make all the difference in you being awarded the credit you are looking for.

Donald Trump has been in the news a lot lately–especially his numerous bankruptcies over the last 20 years. Have you ever wondered how his personal wealth has always stayed intact even though he’s filed four different bankruptcies? You guessed it. He’s never personally declared bankruptcy. His various businesses have and it’s all perfectly legal. Relatively speaking he’s utilized a law that every business owner in the country has available to him/her. Think about that for a moment. Now the last thing we want is for our business to go south. But if it happens wouldn’t it be comfortable to know your personal life wasn’t going to be wiped out?

A solid business credit score can also have numerous other benefits including. your entity now has a value and can be sold if needed…many government contracts require a solid business credit profile…you can lease equipment or vehicles with no personal guarantee…and most of all you get preferential treatment from most lenders because of your dual scores. On top of all that, the average company enrolled in a business credit program typically gets as much as $75,000 in credit without a personal guarantee.

Building business credit is not easy. It takes around six months and you will jump through similar hoops as when you build your personal credit score. Get credit—use it wisely. Get more credit—do the same. In six months your entity will have a score equivalent of a 750 FICO score. Think about the value of that. Business credit is real. It does work. It should be a part of every serious business owner’s longevity plan.

Midas Financial represents the #1 rated business credit building companies in the country. We’ve also built over 2000 entities in the last 12.5 years. 

If you’d like to get more information on exactly how the program works just send me an e-mail to: [email protected].  In the subject line put “building business credit”.  We’ll send you our step by step overview of how we build business credit for your company.

And as always, happy and intelligent borrowing……

DAVID L. CARLL | PARTNER

SMALL BUSINESS CAPITAL SOLUTIONS

Office:602.595.9014 | e:david@midas-financial.com