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Building Corporate Credit &
Building Business Credit
Which Small Business Financing Method is Better?
Today's world of small business financing has created two terms that often describe the same thing, but they are also often confused. Although the difference between building corporate credit and building business credit is minor, it is important to understand and it can make all the difference when you attempt to obtain small business financing.
The terms building business credit and building corporate credit are synonymous and we often interchange them throughout our website and it is accepted throughout the industry. The only possible difference lies in how you structure your business to properly build credit. There are credit service companies who will teach you that the only thing you need to start building business credit is an EIN and a DBA for your sole proprietorship. Building business credit rather than building corporate credit might not adversely affect the finance options available in the short-term but it will hinder your business by causing two main problems. First if you operate as a sole proprietor you are 100% liable for all debt the business takes on, something that can be limited by setting up the proper legal entity. Second is many lenders will not lend to a business that is not a corporate or LLC. If this is the method you are using for building business credit please signup for our free guide to building corporate credit by entering your information on the right.
As we mentioned we use the terms corporate credit and business credit interchangeably, so when visiting the pages of our website keep in mind that business credit also means corporate credit. As long as you listen to our advice and signup for the free guide you will be well on your way to obtaining the small business financing you deserve.
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