Stage Two of the Business Credit Success Guide
How to Build Small Business Credit with No Personal Guarantee

Step 6 ~ Benefits of Using Business Credit

Perhaps the most significant benefit of building business credit and qualifying for unsecured financing without a personal guarantee is you will drastically reduce the number of inquiries on your personal credit files.  This becomes very important for the following reasons:

* As you probably know, each inquiry reduces your credit score by 1-5 points so your credit score can take a massive dive with only a hand-full of inquiries.

* The more inquiries a new creditor sees on your credit report, the less likely they are to approve your account.

* If you personally guarantee a business credit account to get approved, it is likely the account won’t report to the personal credit bureaus but a new credit lender will be able to see an inquiry from another business credit issuer. Whether or not you actually have this account, the new business credit lender will assume the inquiry means another account with hidden debt so they will likely decline your application.

We realize there are certain times when a personal guarantee is in order so this adds another reason to dispute incorrect inquiries and have them removed from your personal credit files.  Revisit Step 3 for the options available.

It is obvious we are preaching to the choir as everyone reading this guide understands how critical it is to build small business credit.  Since you are well on your way to building business credit it is important to take a look at what the future holds for your small business so you can begin to envision the benefits of the business credit that will soon be accessible.
Business Credit Cards

The majority of business credit cards have phenomenal promotional deals such as 0% for 12 months or 2.9% for life, and it is very possible to have access to $50,000 to $150,000 in revolving business credit within a short period of time.  We will share later business credit cards (available without a personal guarantee) later in this guide that will easily approve your business for $25,000 and allow you to balance transfer the full amount into your business checking account for instant cash access.
Business Lines of Credit

Traditional banks offer a business line of credit, which is similar to a business credit card, except for the exciting fact that you always have cash access to 100% of your available credit.  Depending on the age, financial state and business credit profile of your business you can qualify for anywhere from $10,000 up to $1,000,000 in cash access business lines of credit. If you have at least decent personal credit now we suggest contacting our Business Line of Credit Partner to see what you can qualify for today.  If you don’t have decent personal credit now, we suggest you revisit Step 3 and work on your personal credit while you build business credit. Later in this guide we will also share a strategy for obtaining business lines of credit with no personal guarantee.
Equipment Financing

Equipment financing can be thought of as secured financing for pieces of equipment needed to conduct business activities.  This type of financing is much more lenient and banks will approve your business for significantly larger loan amounts because the funds are secured by the equipment purchased.  If you know the right sources, which we will also share later in this guide, you can easily obtain $100,000 in equipment financing without a personal guarantee.  So whether you need a printing press, a new lawnmower or possibly a new company car this financing option might be for you.