Today, running a business is more challenging than ever. Due to economic conditions, many start-ups are discovering that securing financing seems like an impossible task. Fortunately, there are ways to get business credit without personal guarantee.
Although it’s often tempting to use personal credit or home equity lines to finance your business, that decision carries a significant amount of risk. Demonstrating that your business is capable of consistent payment performance takes time, and diligence. However, it’s an effective way to build credit without relying on your personal assets.
Don’t be misled by thinking that you’ll have to stifle your spending habits in order to strengthen your credit. Expenses are a realistic part of operating a business. Start by opening smaller lines of credit, such as a secure business credit card.
Before you submit any applications, perform careful research. There are a huge number of corporate cards to choose from. For best results, select one that comes with agreeable terms, and also supports your overall business strategies.
Fortunately, this is one of the most accessible ways to get business credit without personal guarantee. However, before finalizing anything with a credit card
provider, verify that your personal credit score won’t be affected by the results of your business-related application. Ordinarily, the total amount of application attempts for a personal credit card is noted in your record, and can cause your credit score to drop.
Also, consider working with companies such as Provident Dedicated Services LLC. They specialize in connecting you with choices that won’t hamper your personal finances. Decide what your priorities are, then approach them and let them work on finding a suitable match.
Personal credit is no longer considered to be an adequate way of gauging the health of a business. Steer away from putting your assets in danger and use the above ideas to get financing for your company instead.