Many business owners don’t even truly understand the difference between business and personalÂ credit, nor do they generally understand how each one is tracked and obtained. A lot of time we see business owners take what they feel is the easy route and just use their personal credit for business. Below are some reasons recently found on ActiveRainÂ that point towards why you should obtain business credit.
- Whatever debt that is accumulated by your business only affects the business itself rather than your personal credit score.
- Business credit usually has much lower interest rates than personal credit does. So you are saving money by obtaining business credit.
- By obtaining business credit you improve the appearance and well being of your business. It looks to outsiders as your business is doing well when it is funded under it’s own name rather than under the owners name.
- Increase your businesses’ ability to obtain cash credit 10 to 100 times greater then you can obtain personally.