The credit squeeze is dominating the news. Many people are having their personal credit being destroyed due to poor decisions regarding mortgages and personal spending. What is't being talked about as often is how those same poor personal credit scores are going to negatively impact small business owners and business credit?
Many of you are saying, "What are you talking about, personal credit and business credit are 2 different things aren't they"
That's what the T.V. infomercials and seminar hucksters would have you believe. The truth is if you never built up your business credit, or done it the right way, you may not realize that there are different types of business credit and when you are just establishing that credit your personal guarantee is needed.
Sure you may have been in business for 8 years and paid all of your vendors on time, but if they never reported your good pay status the credit bureaus don't know you exist. Applying for vendor or trade lines of credit is often started by using your social security number to start building up your scores.
With Dun and Bradstreet, Experian, and other agencies holding so much power for the small business person to use other people's money to grow their business learning how to develop business credit is a worthwhile investment. There is a big problem though; everyone has a different answer about how to do this the right way.
As the CEO of Nevada Corporate Planners, has been researching the subject for over a year. He has had top bank officials in meetings and negotiations for hours on end. He has listened to the seminar speakers promise the world and deliver frustration. Scott has also interviewed some of the top experts in the fields of both business and personal credit.
I've never seen as much confusion about any subject since researching entity structuring. Personal credit does powerfully impact how a business owner can start to establish credit for their business, but nobody wants to talk about that for the new business owner.
Can you get business credit with less than perfect credit? The answer is yes and no. You see it's just like running a business, every little bit of information can have a dramatic impact on whether or not you can build your business credit lines and start growing your business. Unfortunately this article can't give you the "easy answer"?, because there isn't one.
Each business owner must discover, research, and just dive in to learn how to understand just what each creditor is looking for and how to fill out their questionnaires.
So if you're in a situation that has your personal credit teetering on the edge of being damaged and you want to expand your business this year or in the future you should commit to some time studying how to improve both personal scores and establishing business credit the smart way.
Author Resource:-
Scott Letourneau is the CEO of NCP, Inc. and is offering free business credit training to interested business owners across the country. For a Free one hour class where Scott corners a national bank official and asks the "Hard questions" visit http://nvinc.com/business-credit.htm
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