What every small business owner needs to know about business credit.

So many small business owners started their companies – and still run them – by using personal credit cards and personal loans. However, they don’t realize how dangerous this can be.

For starters, they may not realize that when you use personal credit for business purposes, your personal credit score (FICO) actually goes down a few point every time you use your credit. This can seriously affect your ability to obtain credit – not only for your business – but for your personal needs as well.

In addition, when business owners use personal credit to fund their businesses, they’re liable for any debts incurred by the business, which means that if the business happens to go under, their personal credit can be ruined if they’re not able to pay off the debts quickly.

Another point that many small business owners fail to realize is that by having strong business credit (credit that’s in the name of the business rather than the owner) it gets reported to Dun & Bradstreet, which is the largest business credit reporting agency in the country. This is important because when creditors see a good rating with D&B, you’re much more likely to get the credit lines you need than if you had no rating or no reporting with D&B.

If you’re a small business owner and all of this seems foreign to you, don’t be ashamed because millions of business owners are in the same boat.

The Initial Underwriting Group is a group of underwriters who help small businesses build strong business credit so they can become more successful and ensure that the owners are protected should anything happen to the business.

Initial Underwriting Group has been helping virtually every kind of business owner build strong credit and obtain financing throughout the years. From inventors, to real estate investors and even franchise buyers, IUG can help just about every type of business owner.

And if you’re in the beginning stages of getting your business started, IUG can help there too. Whether you’re looking for assistance in writing a business plan or just need advice on getting your business incorporated, IUG can design a custom plan to suit your specific needs.

To find out if IUG is a good fit for your business, you can fill out a free application online by going to their website at initialunderwriting.org.

Additional Resources

Initial Underwriting Group :: Homepage
Initial Underwriting Group :: Article on Uploads.biz
Initial Underwriting Group :: Listed on DownTownProfile.com
Initial Underwriting Group :: Information on 1HRO.com
Initial Underwriting Group :: Article on CorporationReview
Initial Underwriting Group :: Article on DTProfile.com