Business credit is similar to your own personal credit. The key difference is that this is for your business. Smart business people separate their credit histories so problems don’t overlap and negatively affect two lines of credit instead of just one if tragedy strikes. Good business credit gives you the ability to get favorable loans free of high interest rates or personal guarantee requirements. With high enough credit, you can pay back vendors days after receiving their product or service or extend payment if needed. Good credit gives your business a certain level of respectability and entices customers to do business with you.
Entries from April 2008 ↓
Secrets to How You Can Build Amazing Business Credit!
April 24th, 2008 — Business Credit, Business Credit Builder, Personal Credit
Avoid Personal Guarantees in Your Business Name
April 7th, 2008 — Business Credit, Personal Credit
A Personal Guarantee is a promise by you and your business partners that you will repay the loan. If your business goes under or you can’t send in your payment, this has no bearing on the repayment of the loan to the bank. You and your business personally guaranteed the loan would be prepaid. If you have to sell off your business and your personal assets due to a judgment then so be it. You personally guaranteed it. If this means non business items such as family heirlooms are sold at 10% of their value are sold to pay the bank, they don’t care. They want their money and they’ll do whatever they legally need to do to get it.
Secrets of Trade Credit vs Business Financing
April 4th, 2008 — Business Credit, Business Financing
When you look into getting items and services for your business, the goal is to minimize your personal guarantee and avoid touching your personal credit. A personal guarantee makes you and your partners liable if the loan ever defaults. In bad cases, your personal assets could be sold off to pay for a loan. You don’t want to do that. Let’s look into Trade Credit and Business Financing as options for your business.
Incorporating In Nevada And Relying Upon Privacy To Protect You
April 3rd, 2008 — Nevada Corporations, Privacy
When it comes to protecting your hard earned assets you want every advantage possible. When incorporating in Nevada it is often promised that there is a level of privacy for the owners of a corporation or LLC that will help them in case of a lawsuit. Some individuals looking to form a Nevada corporation or LLC are hoping that if they get sued no one will find out who the owner of the corporation or LLC may be. Thus, preventing them from being a the target of frivolous lawsuits.
