As a business owner, it is important to separate your personal and business finances. There is a strategy to implementing a good credit score for your company.
A business credit score is much like your own personal credit score; it shows the ability to repay its debts. Good business credit will be helpful if you decide in the future to apply for business loans, etc.
The Small Business Administration guest blogger and business credit adviser, Marco Carbajo, offers these 10 reasons to start building credit in your business’ name:
1. Protect your personal credit ratings
2. Protect the corporate veil
3. Limit personal liability
4. Conserve cash flow
5. Limit accumulating personal debt
6. Maximize financing opportunities
7. Build a business asset
8. Limit inquiries
9. Receive larger credit limits
10. SAVE MONEY!
There are many factors that affect your business credit score just like your personal credit score such as payment history, the amount of credit you have available, the age of your credit profile, and delinquencies.
So when you incorporate your company, make sure to think of these helpful tips to building your business credit score.
