Master Card is doing a story on how businesses can effectively apply for and utilize lines of credit for their business. I wanted to share some of the highlights here because I think this information is important to every business owner and these are questions that I am asked quite often.
Small or new business owners sometimes don't realize that when you first open a business, our personal credit is your business credit, so if you have bad credit personally, you will want to clean that up before you start your business.
When you apply for and are approved for business credit you will find that it will:
- Improve your cash flow and financial independence.
- Be easier to qualify for a line of credit than a commercial loan.
- Help build your business credit.
There are also some things to be aware of when you are approved for a line of credit that can hurt your business. Some of those tings are:
- The temptation to spend beyond your ability to re-pay the debt.
- The potential for high interest rates.
Do your research and ask for help if you need it. Your credit is an important part of your life and an important part of your businesses "life".
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