Why Even Small Businesses Has To Have Business Credit
If you read this headline and thought, I do not need business credit because–
I work out of my house. I only work part-time. We just have a mom-and-pop shop. It is just me anyway. Incorporating takes money. I can open a DBA business with a checking account and a business license. I do not need to spend the extra cash.
You thought one of the many reasons small business owners give to business consultants and financial advisors when they are asked why they have not established business credit or business funding.
The plain fact is that almost every small business — one-man show, mom-and-pop, hobby that pays money — whatever you want to call it, can benefit by building business credit. This means it benefits you, the small business owner the most!
Establishing business credit is relatively easy and can afford you, and your small business, many benefits right now. Pre–established business credit lines can help your business (and you!) survive a rough patch or finance the growth of your business in ways you did not think possible before.
Three basic steps will get you on your way to establishing a business line of credit:
1. Become a legal business entity. Incorporate your business as a standard corporation (C- or S-), or a limited-liability corporation (LLC), or other incorporation.2. Make sure you have a business pho
