BAD ADVICE ON HOW TO BUILD BUSINESS CREDIT
“You Don’t Need to Build Business Credit”
One piece of advice to avoid is the belief that a company credit score is
unnecessary. This is not true because having a good business credit score is
essential for obtaining financing for your company. Just as having good personal
credit is important for you to get money, a strong business credit score is important
for your company to get financing. If you have poor personal credit, it can be
difficult to get credit as an individual. The same goes for your business: if you don’t
have established business credit or have a low business credit score, it may be
difficult to get funding to grow your business.
Certain types of financing, including Cashflow Financing, Term loans, SBA loans,
Corporate Credit Cards, Gas Cards, and Auto Financing, take business credit scores
into account. Credit lenders use business credit ratings to determine how much they
will lend you and the interest rates and terms you will be offered. If your company
lacks a business credit history, you may be required to provide a personal
guarantee, which could put your personal assets at risk


“You Don’t Need a Business Entity”
“Just Go Open Some Business Credit Cards”
“Open as Many Accounts as Fast as Possible”
Don’t Buy Anything With Your Credit

“Personally Guarantee All Your Credit Lines”
“You Can Do It On Your Own”
