Getting Business Growth with Business Lines of Credit
Growing your business means having the funding that you need when you need it. With business lines of credit, you can get all the advantages of using credit cards for your purchases without having to carry that debt on your personal credit history. This means finding fast funding for timely projects, paying bills on time for better business credit and even easier accounting and tax prep over using personal cards.
Separate Credit Histories
With small businesses, particularly startups, it can be too easy to put your business debt on your personal credit cards, bank loans, and credit history. When you set up credit lines just for your business, you can start establishing a history for your company with the business credit reporting bureaus and keep that debt off your personal score. Not only will this help you take out personal loans for your private purchases, but it can also make it easier to get business loans in the future without sacrificing current growth.
Lines of credit are revolving loans meant to be used and paid off as needed. This means that you can purchase the supplies or pay the bills that you need now and then pay off the balance as the profits come in. It also means that you can use the lines time and again without having to apply for financing every time. Many companies offering business credit cards will even have a quick approval time with many getting back to you in a week or two. When your bank is taking months to approve a traditional loan, having access to some fast funding can save you from late fees or missed opportunities.
Since your business credit cards will be used only for business purchases, you can more easily separate your expenses for accounting and tax purposes. When you are using your private funding accounts to make these purchases, you will need to keep better track of receipts and have to submit personal banking records when applying for business loans.
Business lines of credit can be a big help to both your business and your personal finances. They can help establish a credit history for your company so you can qualify for loans as you grow and can help you get the financing you need for time-sensitive projects. These credit lines can also help you keep better track of your accounting by making it easier to find and claim purchases on your taxes than if you have to go back over your personal records and hope you do not miss anything.