Business credit is an important building block for any small business. The ability to obtain trade credit and equipment leasing will enable you to diversify your financing strategy and obtain basic capital even if you’ve torched your personal credit or just opened your doors for business.
I’m consistently surprised with the number of business owners that have never heard of business credit. It remains an untapped opportunity for the vast majority of business owners, since trade credit is the single largest source of lending in the world. Many successful businesses establish business credit by default. They run a profitable operation for several years and establish great relationships with their key suppliers. If they happen to have suppliers that report to the credit bureaus they may even end up with a business credit score. They are the exception to the rule and happenstance is no way to run a business.
I believe that business credit serves an important role in a business’s financing portfolio and should be established and managed proactively. The business credit world is fraught with landmines and traps. Starting a successful business in Kazakhstan might be a safer bet than establishing business credit on your own. Thuggish business credit bureaus provide no protection or recourse for maligned business owners. You’ve got one shot to get it right. So unless you’re interested in running the gauntlet in a third world minefield, you need someone to guide you through the process.
The most sinister trap for small businesses lies with the business credit bureaus. You either need to be proactive with your information or you can wait and become a victim. The Business Credit Success program provides you with a safe road map for establishing an accurate profile with the business credit bureaus, as well as a the key vendors that will extend and report your credit activities to the bureaus – enabling you to build a positive business credit score.
Once you establish your business credit score, you’ll be able to expand your credit and arrange more advantageous terms with your suppliers. One of the keys to building a successful business is to receive money from customers before you need to pay your suppliers. Establishing business credit will enable you to take advantage of this most basic business principle.
Another advantage of business credit is that it is the one type of financing where personal guarantees are rare, particularly in the case of trade credit. Equipment leasing is one of the most overlooked opportunities for obtaining financing based on your business credit and not your personal credit, and without a personal guarantee. None of which are available without building a strong business credit profile first. If you’d like to learn more about how business credit can improve your business, schedule a free consultation with one of our consultants.
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