If you are an owner of a small business, growing your business is your main objective and mission. Growing business may hurt your personal credit and demanding the resources that can be used for your personal expenses. According a survey done by SBA, 92% of all businesses loan applications are done based only on the merit of fico and personal assets of applicants.

One of the major reasons for the failure of businesses in USA is the lack of capital because capital is the life source of any business. Business credit is an alternative resource of money and is an area of financing that every company owner should be well versed in. Entrepreneurs are missing out on the single large source of lending in the world without spending time and resources on business credit. Simply Business credit is the best kept secret by winning companies.

There are many pros to establishing and maintaining solid business credit, so all of them to cover in a small article really tough, try another book named business credit Bible.

A few of these benefits are as follows:

• A business credit allows you to get more working capital for your business at lower rates. Even if the credit is in the form of store credit, it can be used to purchase goods that the business needs and increase you cash of business on your hand.
• It is easy to keep your business operating expenses separate from your personal expenses by having separate lines credit in your name of business. This means when it come to file you're your taxes, you will already have separate financial records for business expenses and personal expenses, making your life and tax attorney's life simpler.
• You have the luxury of requesting extra cards for authorized employees to use, with most business credit line. You can control the spending power of very individual card.
• Most important benefit of separating your business credit from personal credit is that if in case your business is in trouble, your personal credit and assets are protected if your company is structured well.

Business credit vs. Personal credit

It is not a secret that having too much debt does not loss you credit score but it lowers you credit worthiness in the eyes of lenders. In business credit, this is just opposite to keep a lot personal debt.

With personal credit, you will be limited in the amount of credit you can accept and your LTV (Loan to Value) will influence your ability to obtain further financing. Personal credit is determined by FICO, and each time a lender requests a credit inquiry, your FICO score will drop by two points then this brands you as an even greater credit risk.

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