Businefits, Which consists of two words > Business & Benefits. Our company consist of an expert business advising and finance team that help you through all aspects of obtaining corporate credit and acquiring business loans.
Corporate Credit, or Business Credit, is credit that is earned and assigned to a corporation or business rather than an individual person. This credit is essential in establishing and maintaining business or banking relationships with potential creditors, vendors, business partners, or even clients. This is because the “credit profile” established by the various credit reporting agencies, and the subsequent credit ratings, are based on your past and current credit history, among other significant factors. This profile and rating system is used by potential creditors, vendors, clients, or business partners to gauge how reliable your company is and whether or not to extend credit to your company, or to engage your company in a business relationship. This relationship can be loaning operating capital to your company or corporation, leasing property, supplying equipment, etc. Establishing Corporate Credit and maintaining it is important to the health and longevity of your business, and it has a major impact on the way your company is seen by the rest of the business world.
The advantages of having established Corporate Credit range from simple operational issues, all the way up to allowing your company to withstand scrutiny from a potential client who may gauge how reliable and proficient your company is by how well your credit profile reads. From an operational perspective, establishing Corporate Credit allows you to do such things as purchase supplies, pay debts, maintain facilities, hire additional staff, compensate for a downswing or upswing in business, etc., without depleting vital liquid assets. If you establish business credit you will be assured that your business has the ability to respond rapidly to market demands or growth. For example, while an increase in orders or business is usually a good thing, having the proper credit facilities to allow your company to respond to such demands by facilitating the increase in operational capacity without having to “front the cash” will go a long way to ensuring a much better response to the increase. Other advantages include the fact that many lending institutions, lease providers, etc., base their interest rates on what the Business Credit Profile and rating is for your company. Having established credit can lead to a substantial savings in interest rates and much more favorable lease and loan terms.
Using your personal credit profile, also known as your “Consumer Credit Profile,” in lieu of establishing proper Business or Corporate Credit is a bad idea on many fronts. Much like guaranteeing any corporate loans or debts personally, or “co-mingling” of corporate and personal funds or assets, the use of one’s personal Consumer Credit Profile for the benefit or operation of the company can lead to an “alter-ego” determination by regulatory or financial organizations, and a piercing of the corporate veil. This would directly endanger the owner’s personal assets and make the owner or owners directly liable for the penalties or repayment of any debts incurred by the company or corporation. It is always a good idea to build business credit rather than abandon the corporate form through the co-mingling of funds–and this includes the “co-mingling” of credit profiles. Another disadvantage of using your Consumer Credit Profile in place of proper Business or Corporate Credit is the fact that the use of personal credit for the operation of a company can be accompanied by the very real consequence of making your company appear inadequately funded or operated, or may incorrectly infer that your business credit is unstable, unreliable, or overextended. This is further compounded by the fact that there are different rules and determinants for the granting of consumer credit, and what might be perfectly normal and acceptable for a Corporate Credit Profile, such as multiple applications for credit that are a regular matter of course for a business, can have a negative impact on a Consumer Credit Profile.
Every time you make a payment on time, to a company or business that is itself rated by any of the Firms mentioned above, a record is being made in your credit profile. It is important that the business you deal with also report to the various agencies as this ensures that your experiences, and payments, are duly recorded. Keep your debt in check. This means that you incur only as much debt as you need operationally, and that you keep tabs on credit lines and other debt-financing. The more debt your company has, the more net worth or income it must have in order to not have it impact negatively in your Credit Profile. Too much debt, or too many potential debt expenditures may negatively impact your credit worthiness. Keep your Personal Consumer Credit Profile in good standing. Although the Consumer and Corporate Credit Profiles are completely different and are not supposed to have relevance to each other, prospective lenders or credit providers may indeed examine the consumer credit profile of the owner(s) in order to establish business credit worthiness. Having your Consumer Credit in good standing can positively impact how your Corporate Credit Worthiness is perceived. Play an active role in your own Profile. It is very important that you actively review, and play an active role in the maintenance of your credit profile. Make regular reports to your profile, contribute all that you can, and ensure that any entries in your report are accurate. It is also a worthwhile measure to compare and contrast your profile with other companies or corporations that are similar to yours to see what the trends are, where you fall in that group, etc. Seek expert advice. When you are ready to play an active role in establishing or improving your profile, consult with experts that have proven track records in this arena. They will know how to navigate through the some times murky waters that can lead to improved credit worthiness and a worthy Corporate Credit Profile for your business. It isn’t enough any more to simply have a Corporate Credit Profile. In order to stay ahead of the pack in these highly competitive markets, establishing a well thought out business credit profile, and improving its standing, can pay huge dividends for you and your company.
Your company should establish Business Credit, because your firm get chances you never assumed you would and opportunities multiply. You can get all new equipment, bid on real estate, and deal with the company payroll, even when times are a bit lean.
The BUSINEFITS CREDIT BUILDER PROGRAM is a self paced program. Depending on if you are starting a new business or if your are an established company. The time varies. Success have been achieved as little as 30 days with a new start up company.
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