Have you heard about the number one pitfall small business owners stumble into when it comes to business credit?

If you’re a small business owner, chances are you’ve used your personal credit cards or obtained personal loans to fund some or all of your business’ financial needs.

This is a mistake because as you use your personal credit for business, your FICO score (personal credit score) actually decreases by a few points every time you add something to your credit. This has the potential to limit your ability to obtain additional lines of credit for your business as your score decreases, and can seriously damage your personal credit rating should something unfortunate ever happen to the business.

When you use personal credit for business purposes, the credit holder becomes responsible for all debts incurred by the business; something that doesn’t happen when business and personal credit are kept separate. Building strong business credit has little impact on personal credit, which is why it’s so important to keep the two separate.

Another advantage to having strong business credit is that the credit rating you build can be reported to Dun & Bradstreet – the largest business credit reporting agency in the US. Having a good rating at Dun & Bradstreet will definitely make a good impression upon future creditors and make it easier for you to obtain financing for your small business. In addition, having strong business credit can save you money through lower interest rates, smaller closing costs, lower lease rates and higher credit lines.

The Initial Underwriting Group is a company that specializes in helping small business owners build strong business credit, obtain financing and keep their personal credit lines separate from their business credit lines.

They’re also able to customize programs for people who are in the process of getting their business off the ground. From building a good business profile, to writing business plans, to advice on incorporating, if you’re in business, chances are IUG can help.

Initial Underwriting Group has been helping small businesses of all stripes build good business credit and get the financing they need to succeed. If you think they’d be a good match for your business, you can apply online at no charge to find out. Simply visit them at www.initialunderwriting.org.

Additional Resources

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