Why Building Business Credit using your EIN is Important?

Why Building Business Credit using your EIN is Important?

Your personal credit doesn't matter when it comes to building your business credit in most cases
-How to start a Business Credit Profile & Score
-How to get Vendor, Store, & Cash Credit for your business with NO Personal Guarantee or Credit Check
-How to obtain Business Credit

"Gov Business NW is Happy to have Terril Davis as our guest speaker!"
"Knowledge Changes Everything!"

SO Why is Building Business Credit using your EIN SO Important?

Ever heard other businesses using credit but never understood how that works or what that looks like? Do you have less than perfect personal credit and wanted to use business credit but felt disqualified?

Business Credit is a credit that is obtained by your business in your business name. The business builds its own credit score and profile to be used to scale the business and can be a great alternative to applying for SBA Loans when established correctly. With an established profile, the business can qualify for his own credit and ability to use credit. This credit is based on the business’s ability to pay, and not the business owners. Since the business now qualifies for the credit, in some cases there is no personal credit check required from the business owner. In other cases, having a good personal credit score is used as an initial personal guaranty when the business is at its early stage and yet to establish a decent cash flow. Establishing business credit gives business owners double the borrowing power as they have both Personal and Business credit profiles built. The business can obtain credit much faster using their business credit profile versus the owner’s personal credit profile. Approval limits are much higher on business accounts versus personal accounts which are yet another benefit. Per SBA, credit limits on business cards are usually 10 – 100 times higher than consumer credit.

As you build your business consider the option of structuring and establishing your business name and brand in a manner that leverages business credit using its EIN and not your SSN.