Stage Two of the Business Credit Success Guide
How to Build Small Business Credit with No Personal Guarantee

Step 7 ~ Who Should Build Business Credit

The question of who should and shouldn’t build business credit is fairly obvious but deserves the attention in this portion of the guide.  The business credit industry is often taken advantage of which causes undo hardship on those that should build business credit. If you fall into any of these categories below we highly suggest you re-think your decision to continue with this process:

• If you are building business credit to circumvent bad personal credit you shouldn’t be building business credit.

• If you are trying to take advantage of how the business credit system is setup, you shouldn’t be building business credit.

• If your only motive to start a business is to take advantage of of business credit you shouldn’t be building business credit.

• If your intention is to build business credit and never pay back the debt you shouldn’t be building business credit.

Now that we have that out of the way we can focus on the honest, hard-working small business owner and share the possibilities for those of you who should build business credit.

If we were to look for the single most common factor for business failure, it would be safe to say that the majority of business failures are a result of a small business owner’s limited access to additional business financing sources.  What if these small business owners knew the power of building business credit and using it in their small business?  The obvious answer is they could have increased their inventory, hired additional employees or maybe just paid the bills just one more month until their business skyrocketed.

The viscous cycle most small business owners get into is using their personal credit to fund their business activities.  The main problem this creates is a lower than normal credit score caused by using the majority of your available credit.  Being over-extended with personal credit will cause a significant drop in your credit score AND makes it difficult, if not impossible, to be approved for any more credit when you are maxed out with what you have available.  With a strong business credit profile it will now be possible to obtain enough business credit to free up all your personal credit, instantly boosting your credit score and opening the door to larger business lines of credit to help continue the growth of your small business.