Are you clueless about business credit? Would you like to know what business credit can do for you? Then you better read this article word for word because what you don’t know could actually be costing you.
Having a bankroll of credit for your business not only gives you a HUGE advantage over your competition, but it protects you and your family from danger. Here are just 7 of the top reasons to consider business credit:
1. You’ Are Less Likely To Fail – According to the Small Business Administration, 50% of businesses fail in the first year and by the fifth year 95% of businesses will ‘bite the dust’. The #1 reason for their failure is lack of financing!
2. EXPLOSIVE Amounts of Money When You Need It Most – When you buy houses with personal credit, there comes a point when you get tapped out. The banks stop lending to you, your personal credit score starts dropping and eventually your interest rates will climb, costing you money. With business credit, you can get access to much more money because your corporation is going after it. Here’s the best part. You can have multiple corporations and establish credit for each one, unlike personal credit obtained using a single social security number!
3. Ultimate Leverage – Real Estate is all about leveraging other people’s money, not yours. No money down, right? With business credit, you aren’t putting up your own money. You’re having your corporation front the money.
4. Incredible Tax Advantages – If you’re not incorporated, you are NOT a real estate investor or business owner for that matter. One of the greatest advantages we have in the United States is the ability to have a corporation. Properly structure corporations, shield us from heavy taxes. Combine this with the business credit interest write off, the savings are tremendous.
5. Shields Liability – Remember this word: Unsecured. Yes, as investors we go after unsecured lines of credit, meaning that we aren’t putting up our own house or car as collateral. Eventually when your corporation has history, it can start making guarantees for the money it borrows, not you. This will come in handy when protecting you and your family from those frivolous lawsuits nowadays.
6. No Interest – Where can you find hard money that’s cheap? Does it exist? With business credit, many times you can get lower to no interest rates. I particularly like going after credit cards with special introductory interest rates of 0% for 6 to 12 months!
7. Cherry Picking the Best Deals – The main difference between wealthy people and the middle class is that ability to act on opportunity. People with money can move with speed and jump at the best opportunities and juiciest deals. Just think of that deal that got away from you because you tried to buy it for no money down. People with money can pull the trigger and get the best prices. Better said, “Money talks!”
If you plan to make it as an investor, then you should consider investigating business credit. Acquiring $100,000 Dollars in business credit may seem impossible from where you are standing now. However, if you had a map to get there, it would shortcut your way to wealth. Can you imagine how you’d use that $100,000 to grow expand of even launch your business?
