Business Credit is credit that is obtained in a business name. With business credit, the business builds its own credit profile and credit score. With an established credit profile and score, the business will then qualify for credit. The credit is based on the business’ ability to pay, and not the business owner.
Having good business credit opens doors.
1. Having a credit profile that is completely separate from the business owner’s personal credit profile. This gives owners double the borrowing power as they have both personal and business credit profiles built.
2. Businesses credit scores are based only on whether the business pays its bills on time. A business owner can obtain credit much faster using their business credit profile versus their personal credit profile. Approval limits are much higher on business accounts versus personal accounts which are yet another benefit
3. Business can use its credit to qualify for retail credit tier cards like staples, lowes, Sam’s Club, Wal-Mart, Costco, Bp, even MasterCard, Visa, AMEX.
4. Business can also qualify for credit lines and Loans.
5. Most Business Credit can be obtained without the owner taking on personal liability, or a personal guarantee. This means in case of default, the business owner’s personal assets can’t be pursued.