Stage One of the Business Credit Success Guide
How to Build Small Business Credit with No Personal Guarantee
Step 13 ~ Accounting & Record-Keeping
Every large business has a strong and reliable accounting and record-keeping system running in the background, while the majority of small business owners spend little time, effort or money implementing these systems for their business. Why is this important? The large businesses understand the leverage of money and each have relationships with several banks who willingly lend them money because they can easily produce detailed financial statements to prove their lending credibility.
The small business owner often downplays this which ultimately hinders their ability to obtain any type of bank financing. To clarify, there are a number of banks that will give your business an unsecured business loan or business line of credit with no documentation, but if you want to access the same type of financing given to larger companies it is critical to have your systems setup so information can be readily available in a clear and concise manner. One of the secrets to obtaining large lines of credit is to know how a bank expects to see the financial operation of your business detailed on paper. We will share this later in this guide but understand for now that it is important to implement the accounting and record-keeping solution that is best for your business, thinking both short-term and long-term.
Get prepared for all the accounting decisions your business must make by setting up an initial consultation (often free) with a few accountants in your local area to discuss the best structure for your business. Even if you don’t employ their services you will have a full understanding of what processes and systems are necessary to implement for your business.
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