Archive for the ‘Building Business Credit’ Category

Benefits Of A Business Credit For Small Businesses

Tuesday, November 9th, 2010

Building a business credit may not sound very easy particularly for small business owners. With all the legwork for processing necessary paper work to legitimize your business and acquisition of needed supplies, your time may be quite limited to even worry about establishing a business credit. On the other hand, if you are seriously eying for long-term plans and expansion as your revenue grows, you would look at a business credit as an important aspect that has to be included in your business blueprint.

Here are some of the benefits you will reap if you have a positive business credit under your belt:

1.      Gives an air of legality. While business permits, tax identification number, and other paper work are at your disposal will validate the legitimacy of your business, having a business credit is another reason for companies to confidently establish business relationships with you. A good business credit serves as a basis for other businesses whether or not they will lend you money and on what terms you will be eligible for.

2.      Helps in building a positive credit history. Whether you’re dealing with an office supplier that reports your positive activities to business credit bureaus, banks, or other lenders, always make it a point to pay your financial obligations consistently on time. Having a positive credit history gives a clean and trustworthy image of your business, and this reputation will be more beneficial to you in your future investments and expansion.

3.      Creates a stable reputation. Operating your business can involve several activities such as buying corporate office supplies, leasing needed equipment, applying for business credit cards, and so on. All this you can deal with ease if only you have a solid business credit. Every other business you will be approaching for assistance to ensure smooth operation of your business and future expansion plans will be looking at your business credit history to see if you are a viable partner; can pay promptly on leased equipment; can afford purchasing all necessary corporate office supplies, etc.


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