Financing With Business Credit Cards

At one time, owners of businesses had to get business credit against the things that they owned personally and based on their personal credit score. If you set the business up as an official entity- separate from yourself, you can apply for various business funding, including loans or credit cards. What happens if your personal credit score is not-so-good?

You can take some steps to increase your chances of getting a business credit card (or some other form of business funding) by doing the following:

Take steps to increase your personal score. Is your credit score below 640? This type of business structure automatically means the business is separate, and not just an extension of you. Believe it or not, using a PO Box can hinder your ability to get a business credit card or loan! Having a business phone line also will increase the way the business is looked at by lenders, and ensures the business is reachable.

Get a credit card in your name and then use it only for the business. Over time, you'll build up your personal credit score, which is seen as a boost for the business validity- and eventually you'll be able to obtain funding and credit cards under the business name.

Getting business credit cards and financing is a necessity that all businesses will face from time to time. There is a need for cash flow in order to grow and increase the business. With some careful planning and preparation, most businesses will be approved for a business credit card even if the owner has personal credit that is slightly less-than-perfect.


2 comments:

  • Vishenda

    Thanks for sharing this information.

    Financing your business through credit card has many advantages like it will be easier to do the accounting because everything is recorded.

    Vishenda
    Business Credit Cards

  • Warner Carter

    You will be automatically enrolled into the programme as a Standard Chartered Credit Card holder and can enjoy more value on your daily purchases, shopping and even utility bill payments. utah credit card machine

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