Business Credit is one of the most important topics when owning a business that is not always fully understood.

Naturally, there are tricks to build credit for your business that will not effect your personal credit negatively, as long as you use the credit positively.

If your business is one that needs to rely on financing IE credit, credit cards, loans, etc., it is IMPERATIVE that you have a business savings at EACH credit union in your area that you are eligible for.

Credit Unions are typically more forgiving with personal credit then banks are. Additionally, they also have lower APR (APY) percentage than banks do.

By having an account with them, they will also be more willing to give you a loan. A trick to building both personal and business credit is to open a secured loan or line of credit (preferably one that has a balance of over $2,500 dollars) and co-sign the account with your personal credit. Move the entire $2,500 over into a high yield savings account and transfer money over from the savings to pay the loan each month.

You also have the option to pay the loan with profits from the business, but this is as long as there is money left over from paying yourself and expenses.

You can deduct the loan interest from your taxes (whatever is over what you receive from the savings account) , so it will not hurt you over the long term.

Pay back the loan over a long period of time and it will build both credits at the same time. Once that loan is over, rinse and repeat; however, it is a good idea to either pay a credit repair place to remove the inquire first or do it yourself if you know how.


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