How Do Small Businesses Establish Credit?
If your company is new or you haven’t used any type of financing before, you may not realize that establishing business credit can require a bit of planning. Many small business owners prefer to keep their personal and business finances separate — there are measures in place that can protect your enterprise’s finances from interfering with your personal finances in certain business entities, such as with a limited liability company (LLC).
It’s extremely helpful to have another financing option available if your business experiences a lull and during times that you have a low cash flow. Before you can access a business loan or line of credit, you’ll need to complete the following steps to establish credit for your enterprise rather than using personal credit.
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