Business Credit: Top 3 Reasons Why You Need It
There’s no reason to be alarmed – You’re just wanting to adjust to the times ahead. With the rapid growth of our economy due to the ever so constant demand of consumers, there are tons of entrepreneurs (starting and existing) who are stuck in their present frame of mind in meeting their financial needs of their business by using their Personal Credit (AKA Personal Credit Cards).
According to the Wall Street Journal, 65% of businesses fail within the first 5 years due to the lack of capital. This lack of capital is predicated upon “co-mingling” their business expenses with their personal credit. Not only does this result in having an over utilization when one needs consumer credit, but it can also prevent growth and expansion for a business when in need for capital.
TOP 3 REASONS
FOR ESTABLISHING BUSINESS CREDIT
- FREE UP CASH FLOW: Limiting expenses and increasing revenues (or Cash Flow) are always at the top of the priority list for Business Owners. Having a strong Business Credit Profile will enable you to use the extra cash necessary at your disposal when an emergency or unexpected situation in the business arises.
- INTEREST FRIENDLY: Most Business Credit Lines come with a 0% introductory APR for the first 12-18 months. This is a luxury especially when starting to build upon your Business Credit.
- MAXIMIZE TAX BENEFITS: Entrepreneurs are always looking for a great Tax write off. Look no further. Being equipped with a strong Business Credit Profile, it’ll be a great tax deduction for the expenses you place on your Business Credit lines and much easier to separate your Tax expenses once Tax season comes around.
For more info on building Business Credit, contact our team at Hudson Commercial Capital Lending, LLC today!