Pat gage
Pat Gage, The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage's site at www.10stepstomoney.com
Articles by this Author
One of the most common business mistakes many small business owners and entrepreneurs make, is commingling their business and personal finances. The result can often be catastrophic. And for the most part, small business owners aren't even aware of the implications. How so? Glad you asked.
Credit-it's probably one of the most important business tools your small business can have. In fact, it's not only important, but essential. You need it to grow your business, take advantage of equipment and supply sales or leasing, expansion, and a thousand other things.
So there you sit. You have great plans for a great new business; a sure-fire winner. But there's a problem. You're pretty sure your personal credit is less than perfect. Well, actually you know it's in the dumpster. End of dream? No, start of a plan to get this ship out of dry dock.
Let's say your business needs a capital infusion. Things are going well, but you need extra cash to expand, hire new employees, make improvements, increase marketing- whatever.
You may be trying to start a business, or have one that's in its initial stages. Your idea is great, your plan is flawless, and your product or service is ready for the fast lane. Only problem is, that super-charged, can't-miss-small-business of yours is sitting by the side of the road. It's stuck, and it's out of gas.
Getting a business credit line from a bank isn't the easiest thing to do; especially if you're a start-up. Seed money, working capital, and other forms of loans, require that you pass a series of credit related checks.
It shouldn't come as a surprise that banks are more than willing to loan money to people with good credit, but shy away from those whose credit is less than perfect. Does that mean the loan you need for your small business is doomed? Not necessarily, because bad credit financing does exist.
To a small business, either a start-up or established, business credit cards can be very valuable financial tools if managed properly. Remember also, that because they're business credit cards, they are unsecured. Which means there is no collateral tied to them. Great benefit!!
So there you are; you've done all your research, scoped out the competition, found your marketing niche, and spent countless hours planning precisely how you're going to open, then operate your business.
Good for you! You were able to get that all important 1st loan to start your start-up business. Now you're up-and-running, business is humming, and things are looking rosier than a horticultural shop in May. Time to sit back and smell those roses? Not quite.