WH AT I S B U S IN E S S C R E D IT ? - PARANDA DAVIS
WHAT IS BUSINESS CREDIT? Business credit is a track record of your business’s financial responsibility that is used to determine its credit worthiness, etc. Business credit is carefully scrutinized by investors, companies and financial institutions in helping to determine if a business is a good candidate to lend money to or, to do business deals with.
compromised then it shouldn’t affect the other. It’s totally possible to have poor personal credit but great business credit, which allows you to minimize the likelihood of your personal credit negatively affecting your business and vice versa. Here are a few ways to establish good business credit. Incorporate your business - To establish business credit you need to be an incorporated company. This is very important as it creates the separation between your personal credit and your business credit, as the incorporated business is considered a is no separation between personal and business credit.
Establishing good business credit is just as important as is building good personal credit. It gives your company the ability to obtain loans with more favourable interest rates and payment terms from lenders. With excellent or good business credit, suppliers will feel more comfortable giving you longer time periods to pay for inventory. You will also be able to negotiate better repayment terms from new vendors and suppliers. Open a company business bank account - Run all or as much of your business transactions through that Since your business credit and personal credit are account and keep the account in good standing. separate and independent of each other, if one is
11 ENTREPRENEUR PLATFORM MAGAZINE
