It’s a dilemma faced by many small business owners: getting business credit without a personal guarantee. So much so that we are constantly asked:
- Can you build business credit without personal credit?
- Is personal credit and business credit the same?
- How do you establish business credit?
- Do business credit cards affect your personal credit score?
The answers to these questions above aren’t found at banks, credit unions, or financial institutions – they are found in the information below. Establishing and building business credit is essential to get a business credit card and business line of credit without a personal guarantee.
Most of us in business, start out with a lot more passion than money. The passion drives us to succeed by any means necessary, even when that means drawing on personal lines of credit to grow a business or just keep it running.
However, you should never mix your business finances and your personal credit. Your personal credit history could be the very thing holding your business back and keeping you from the funds you need to grow. If you’re wondering how to separate the two, we can help.
Why Separate Personal Credit from Business Credit?
A statistic from the Federal Reserve Bank of New York, cited in Entrepreneur, shows that more than half of small business loans are rejected. The lure of personal credit is understandable; if you weren’t passionate and willing to do anything to make your business succeed, you’d still be working a nine to five job.
But the use of personal credit is actually hobbling your ability to get more working capital for your business. After all, a business loan or line of credit can put between ten and one hundred times more money at your disposal.
What’s the Solution?
The solution is as intimidating for business owners as it is simple: establish business credit. Yes, we said “simple.” The steps involved are easy enough to be taken by any small business or solopreneur, and we suggest you start taking them. The Alliant Business Credit Builder Program helps you build business credit without personal guarantee step by step using a proven, business owner approved, and highly personalized process. By using our easy and simple software and the help of our business credit adviser team, you’ll be guided every step of the way to ensure you obtain business credit.
Alliant Business Credit Builder Program Helps You:
- Setup your business to meet lender and credit issuer credibility standards to get automated approvals
- Setup and activate your credit profile with Dun & Bradstreet, Experian, and Equifax Commercial and get your free D-U-N-S number (which is essential to building great business credit)
- Get initial trade credit to build your business credit reports with no personal credit check
- Access up to $60,000 in unsecured credit with 0% rates that you can secure even as a startup
Types of Credit We Help You Access:
- Store business credit with Dell, Apple, Walmart, Amazon, Costco, Sam’s Club, BP, Chevron, Home Depot, Lowes, Staples, Office Depot, Ikea, and with most other major retailers
- Fleet credit for fuel and auto vehicle repairs for your primary vehicle, and a fleet of commercial vehicles
- Cash credit including Visa and MasterCard accounts you can use in most locations worldwide
- Auto vehicle financing to purchase or lease your primary vehicle or a fleet of vehicles, in your business name
How to Build Business Credit Step by Step?
Like anything else you may not have done before, building business credit can seem hopelessly complicated. In truth, it’s time-consuming and won’t give you results overnight. However, we’ve broken down the steps in detail in a free download called the 7 Step Business Credit Building Program (PDF).
We encourage you to download the guide, but here are its main points, in brief and in order:
- Build business credibility
- Establish business reports
- Begin building credit by opening business credit accounts
- Monitor key business reports
- Open further trade accounts
- Monitor your results
- Open a revolving account
Each of these steps involves a number of sub-steps, but as they are completed, you’ll gradually see an improvement in your business credit rating. Other results will be more subtle, but no less important for that. After all, the same steps you’re taking to build credibility with potential lenders is also building your credibility with the public and your prospective customers. This, in turn, creates a feedback loop, giving you higher profits and visibility, while also making you a more desirable loan recipient.
Getting Started Building Business Credit
There’s one last reason you should separate your personal and business finances even if you have no intention of opening a revolving line of credit or taking a significant capital loan. Combining business and personal finances leaves you vulnerable to liability issues in the event of a lawsuit, or of having your personal property seized in the event of financial difficulty. An EIN is better than your SSN!
If you’re ready to take the next step, Alliant Business Systems will provide you with a Business Credit Coach who will help you work your way toward your first approval. For more information, and to get on your way to access to our 2,100-member lender network, contact us today!