Archive for the 'Business Credit Cards' Category
Business Credit Cards – A Key For Success
April 8th, 2008
By The XBanker
One of the most common mistakes that entrepreneurs make is they use their personal credit cards to fund their business. This has a disastrous impact on their personal credit and their financial future – not to mention the problem of co-mingling funds! I highly recommend that you put a business credit card on your short list of start-up needs.
The single most important feature of a good business credit card is that it doesn’t report to the personal credit bureaus (see my post on Ghost Guarantees). This is critical, because it helps you keep your personal credit strong (I’ll talk more about key personal credit ratios in my next post). It also helps you manage your cash flow and track expenses. Business credit cards, just like all bank financing, are going to lean on your personal credit score for approval. You need to have a decent credit score (it doesn’t have to be great) in order to be approved. You also need to make sure that your business is set-up appropriately so that you don’t appear to be a high-risk operation.
Obviously, it is our business to help you qualify and screen out the best available financing for your business. In the event, that you are a “go-it-alone” type, before you apply for any business credit card you need to do some homework. Applying, just to be denied is a fool’s errand. The first thing you need to find out is whether the credit card reports on your personal credit or not. If it reports, you need to move on. If not, you should find out what the bank’s lending requirements are: years in business, industry, personal credit scores, key ratios, etc. You might need to talk to a couple of people, but let me assure you that you can get answers. Don’t get hung up on the initial amount of credit that you are offered. You might need to start small and build up from there. Just make sure that you don’t put it off, make this a priority – you won’t regret it.
Read More »Take the SQ.
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Business Credit Success
Don’t you want to figure out how to build business credit? Business Credit Success can get you on the right track to getting the credit you want. How to build business credit -»
Incorporating a Small Business
Never underestimate the importance of having the right business structure when it comes to securing business financing. XBanker can help you avoid costly mistakes. Incorporate the right way -»
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