Higher Approval Limits No Personal Risk

Business Credit Delivers Higher Approval Limits, Without Personal Risk

A major benefit of business credit is that it more than DOUBLES borrowing ability. You already have consumer credit, now you can have a whole other credit profile with business credit also.

This means it’s the only way to get multiple Staples cards, Office Depot, Lowes, and so on, in most cases.

When you have access to more store and cash credit cards, you also have access to a lot more usable money.

Plus, per SBA business credit limits are 10 – 100 times that of consumer limits. Getting business credit radically increases your available credit as a
result. An average Staples card limit on the consumer side might be $3,000, but in the business world it might be closer to $30,000. Businesses have a need for higher limits, and they get higher limits with business credit.

This is another reason it’s very hard to scale a business using personal credit only. Plus, you can get business credit in less time than you may think. You can get approval for initial vendor credit to help your business grow within one week. That credit will often report within 30 – 90 days. 

Once reported you will then have reported tradelines. In turn, they give you an established business credit profile and score. Once your profile is built in 90 days or less, you can then start getting real usable retail credit cards. Within 120 – 180 days you can then get real cash credit like Visa and MasterCard credit that you can use anywhere.

Grow Your Business, Without the Risk 

When you put your SSN on a credit application, you are almost always providing a personal guarantee. 

This means you are personally liable for your business debts so if you were to default on one of these obligations, the creditor will pursue your business assets first, then they’ll come after your personal assets including your home, your cars, your stocks and bonds, your bank accounts and any and all other assets.

Business owners don’t expect to fail but unfortunately, 90% fail. It makes no sense to put you and your family’s financial future in jeopardy when you know going in that you have a 90% possibility of ruining it.

Remember, many times the reasons a business might fail have nothing to do with you, or things you can control, like shifts in the economy. So, don’t risk it all if you don’t have to.

There is no question, starting and running a business IS risky. This is why most conventional banks make it so hard to get a loan so DON’T use a personal guarantee unless you have to.

With many business loans you will need to. But with business credit you DON’T need to as long as you build business credit.
Remember, when done right, you can get business credit without providing your SSN. This means there is no personal guarantee supplied.

So, if the unthinkable happens and your business fails or you default on your business cards, there is no way the creditors can then come after you personally, or your personal assets.

There is a big misconception that because you have a business credit card you aren’t liable for it personally. Only your business is. But this often isn’t true.

To get real business credit without a personal guarantee you must apply without providing your SSN. If you got a business card but supplied your SSN on the application, chances are good that you did also supply a personal guarantee.

This is why it’s essential to know to get business credit the right way, to eliminate your personal liability and to help your clients do the same. After all, it doesn’t make sense to put your family’s financial future at risk when you don’t need to.