The Importance of Establishing Business Credit
It is important to establish business credit for many of the same reasons that personal credit history is important. A small business with a solid credit history opens up many new opportunities, including lower interest rates and expanded credit lines for the card, which gives the business increased spending power.
Additionally, having a strong credit rating qualifies the small business for heftier loans and access to capital that can then be used to expand the business. Next thing you know, your small business may be a big business!
But perhaps one of the best reasons for establishing business credit is to protect your personal credit. When you use personal money or credit scores to secure funding for your business, you become personally liable for all your business debt. Then, if the business fails your personal credit gets destroyed too.
