Business owners should avoid using personal assets to finance their business. Managing small business credit well in advance of financing needs puts businesses in a favorable position when a need for financing.
Often misunderstood, market credibility is not the same as brand recognition. Rather, market credibility refers to the means by which a firm validates itself with its customers, partners and other entities with which it does business.
When it comes to running a business, putting personal assets at risk for the sake of the company is a decision no one wants to make. In today’s economy, many lenders are trying to mitigate some of their own risk by mandating personal guarantees to qualify for business credit.
One of the great benefits of starting a business is that it is possible to establish a new and separate credit profile that is distinct from your personal credit profile.