Building business credit: How to get a business loan.

 

 

Accessing 50,000, 100,000, 250,000 or more for your business is an important ingredient in business value building and improving profit improvement options.

Creating high business credit capacity without personal guarantees or personal credit reports improves a business owners ability to grow cash flow and business value.  Without a strong business credit profile the pathway to success is more difficult and increases the need and level of working capital and funding to support important growth initiatives.  SBA loans can help but they are almost always personally guaranteed.

There is a reason why large, successful businesses use their business credit to secure funding;  it is not because they don’t have cash. Successful companies use credit to leverage their business initiatives that drive business value.

Most small business owners do not know how to start a business, know very little about business credit, business credit scores or how to go about developing this important element of business value building.  The power of business credit building often surprises business owners who never considered why or how it can be done.

A really important element is business credit building can be done without great personal credit,  It is a process and it can take time,  but it is often easier and faster to substantially increase business credit capacity than building  personal credit capacity.  Those separate capacities are measured differently.

If an owner has great personal credit capacity,  it does not negate the need to build a strong business profile.   The end result of building business credit capacity being a greatly enhanced total borrowing power and a significant reduction in personal risk.

Being able to obtain significantly higher funding is more easily achievable than building personal credit capacity. The benefit of no personal guarantees can almost immediately  improve the net worth of the individual owner.

Stakeholders, partners, lenders and even potential buyers will perceive a more valuable business when a strong business credit profile is achieved.

About the author: Marvin Baker is the Managing Partner of MBA Tampa Bay and helps entrepreneurs build wealth while reducing personal risk exposure.  He is a mastermind behind the exclusive Business Funding Credit Suite, one of the worlds leading business cash and credit access systems and the Six Step Process to Build Business Ownership Wealth and Reduce Personal Risk.  For information on building business credit visit info@mbapartners.biz.