Building Business Credit: Start Out Right!

Success? It’s neither magical nor mysterious. Success is a natural consequence of consistently applying basic fundamentals and tirelessly making an effort to learn. That’s why I want you to know the power of building business credit and the leverage it’ll provide.

Buying, investing, and selling real estate is really an expensive endeavor. Many typically use their own funds or personal credit to cover the cost. 

This strategy? It works well for those who have a large pool of money but it won’t last long. It can really be a real roadblock for you.

That’s what we don’t want to happen! So if you want to push through but don’t have enough cash flow. Building business credit can be your solution! 

Do you want to be successful? Then start building business credit now!

Why? Because it can provide and open many opportunities for you and your business in the future, trust me.

Here’s what you need to know about Business Credit.

BUILDING BUSINESS CREDIT: THINGS YOU NEED TO KNOW

Of course, before you even start building your business, you must legally register it as a business entity. Consider and carefully choose the business structure that’s right for your business type.

WHAT IS BUSINESS CREDIT?

Business Credit is a resource controlled by an entity as a result of past transactions and events. Simply put, it shows the capability and signals your business’ ability to handle its finances, purchasing power, and debt.

Just like your personal credit. Business credit is also something you need to build over time and is expressed through Business Credit Scores. Still, many small business owners tend to use their personal credit to run their businesses. 

However, doing so could put you at risk if you ever found your business in trouble. So make sure to fully grasp your financial standing and take measures to protect your credit standing.

HOW DOES IT WORK?

These reports are typically created when suppliers or creditors report a business’ accounts and activity to a business credit bureau. This kind of activity helps generate information that informs and updates your business credit scores.

BUSINESS CREDIT VS PERSONAL CREDIT

Personal credit score and business credit score are two separate but related numbers. It tells your lenders how creditworthy you, or your business, are. While they seem the same and serve a similar purpose, they’re actually not.

One relates to your personal financial history and is tied to your social security number, which is your Personal Credit. While your Business Credit is based on your business’s financial history and is tied to your business’ EIN.

Although both are distinct and calculated using different factors, they are often connected and should be monitored carefully.

WHY SHOULD REAL ESTATE INVESTORS CONSIDER BUILDING BUSINESS CREDIT

The main reason in building business credit? It’s to separate your personal and business finances, in addition to making filing taxes and tracking your expenses easier. 

It’ll help you preserve the reliability that you get from incorporating your business.

Remember that building business credit is just as important as building and taking good care of your personal credit. Especially when you’re investing in real estate.

Plus, it’ll be easier to get funding through business credit for your next business venture.

MAJOR BENEFITS OF BUILDING BUSINESS CREDIT WHEN YOUR INVESTING IN REAL ESTATES

What do you think is the most important in building business credit for real estate investors? Trust me! Taking time to build business credit will go a long way in the long-term success of your real estate endeavors. 

“Business credit gives you access to loans and other credit that are not available to individuals. Allows you to avoid being personally liable for the loan and having the loan report on your personal credit.” – Toby Mathis

He also added that these factors increase your access to money, reduce your personal exposure to the lending liability. It’ll also remove the risk of a reduced FICO score from the credit.

In other terms, building your own business credit can benefit you as a real estate investor in more ways than one. 

• Large Credit Capacity

Businesses have 10 to 100 times greater credit capacity compared to personal credit. So without it, you’ll have to continue relying on your personal credit that’ll eventually block the road towards your goal.

• Protect Your Personal Credit

As it reduces the personal risk involved in financing investment. It’ll limit if not eliminate the use of personal credit checks since the business has its own credit ratings.

• Increase Company Value

Remember, a creditworthy business has a powerful advantage in its financing ability.

Why? ‘Cause it makes the business very attractive for a potential client or investor.

It builds your legitimacy and trustworthiness within the industry.

It’ll open a lot of opportunities for the investors to grow their businesses.

Never forget, taking the time to establish a business and build business credit will go a long way. 

Wanna start your road towards financial stability and properly manage and budget your money, visit my Wealthy Woman Workshop!

Let’s build a LEGACY!

THE BOTTOM LINE

Building a strong Business Credit is a valuable asset to have as a real estate investor. 

It truly provides remarkable benefits for your business and gives you unique financial advantages in the marketplace. You can leverage it to save money on financing ’cause it’ll open the door to a lot more opportunities.

Remember your credit standing reflects your financial health. 

If you can maintain a good one,  not only does it open up alternative financing options. It also gives you peace of mind when it comes to you and your business’ finances.

It’ll also contribute to the long-term success of your company, especially when you’re investing in real estate.

To build business credit, you’ll need to give yourself time, as it’s not something that’ll happen overnight. That’s why believe me, the sooner you get started, the better! 

It’s never too late to get on the right track.

Yes, it can be a painful process to separate your business and personal credit. But you also know that the benefits far outweigh the costs of the effort, right? 

Ready to start building business credit that’ll completely catapult your business into success? 

Better start taking the first step by enrolling in my Bootcamp about Credit Business Building! To show my sincerity and gratefulness for you, resources are absolutely FREE in the Customer Hub!  

Click here to sign up. 

The Business Credit-Building on the 1st will go in-depth on the Business Credit Building Kit. 

This course is specially made for a woman like you who’s longing to build their credibility in the business industry! With the right preparations, business credit can help open new doors and opportunities for your business.

Join us here! 

Get the key that’ll change your life and start your financial independence journey today!