But, don't think your going to be able to just go and get a loan or credit lines from your suppliers just because your company is down on hard times.
No sir.
You have to start building business credit before you need it.
This way it is at your disposal at the time you'll need it most.
And don't think it can't happen to you, because it happens to all business owners, especially small business owners.
Even if you have excellent personal credit, do you really want to be personally liable for repaying business dept? Didn't think so.
Now that I have your attention lets find out how.
Well, there is really no short way to build business credit.
However, if you follow these simple steps you can be on your way.
But first let me explain something to you.
Building business credit is very important for you personally as well as for your business and here are a few reasons.
One, you protect yourself from being personally liable for the repayment of business dept, second, you can have access to cash or products for sustaining or expanding your business and third, it will increase the value of your business if and when you decide to sell it.
Now, back to building your business credit.
The first step you must take is to set your company up as an entity.
Either a LLC or Corporation.
Once you form the entity, you then get a business address, phone and fax, website and bank account all in the business's name.
What this first step does is separate you from your business, and makes it easier for other businesses to take you serious.
Step 1 is enough food for thought for this article.
It might seem like a lot, but it's not once you get the ball rolling.
In all honesty, this step can be done within a few short days or weeks if you have the desire and cash.
Part 2 of this series is coming next week, God willing.
Thanks for reading.