Business Credit

What is Business Credit?

Business credit is a crucial concept for aspiring entrepreneurs and small business owners. It refers to a business’s ability to obtain financing and credit from lenders, suppliers, and other creditors based on the business’s financial history and creditworthiness rather than the personal credit of the business owner.

Just like personal credit, business credit is built over time through responsible financial behavior, such as making timely payments on loans and credit lines, maintaining a good credit utilization ratio, and establishing a positive credit history with vendors and suppliers. A strong business credit profile can help your business secure better financing terms, lower interest rates, and more favorable repayment options.

How Business Credit Differ from Personal Credit?

Understanding the differences between business credit and personal credit is crucial for aspiring entrepreneurs and small business owners. While both types of credit are essential for financial health, they serve distinct purposes and are evaluated differently by lenders.

Credit Profiles:

Business credit is linked to your company’s Employer Identification Number (EIN), whereas personal credit is associated with your Social Security Number (SSN). This separation allows you to build a credit profile for your business that is independent of your personal credit history.

Credit Reporting Agencies:

Business credit is reported to commercial credit bureaus such as Dun & Bradstreet, Experian Business, and Equifax Business. Personal credit, on the other hand, is reported to consumer credit bureaus like Equifax, Experian, and TransUnion.

Credit Scores:

Business credit scores typically range from 0 to 100, with higher scores indicating lower credit risk. Personal credit scores, such as FICO scores, range from 300 to 850. The criteria for determining these scores also differ, with business credit scores often emphasizing payment history and credit utilization.

Liability:

Establishing strong business credit can help limit your liability. If your business has its credit profile, you may not need to use personal guarantees for business loans and credit lines, thereby protecting your assets.

Access to Capital:

A robust business credit profile can provide better access to financing options tailored for businesses, such as larger credit lines, lower interest rates, and more favorable terms. This can be particularly beneficial for scaling your business and managing cash flow effectively.

By recognizing these differences, you can strategically build and manage your business credit, ensuring that your personal and business financial health remains distinct and robust.

Why Prime Corporate Services?

We’ve helped our customers achieve more than $60 Million dollars in corporate credit.

We have worked with more than 40,000 entrepreneurs to attain corporate credit.

Our combined credit averages between $750,000 – $1,000,000 every week.

Each Client that enrolls in our
Corporate Credit Program receives:

Each Client that enrolls in our Corporate Credit Program receives:

(8) One-on-One Personal Credit Coaching Sessions including an Initial Analysis and Strategy Session
12 months of inbound Support via phone and email
Business Credit File Set Up and Registration(s)
Set Up initial credit accounts
Participate in our FAST-TRACK PROGRAM to obtain a PERFECT Paydex Score
Opportunity to apply for advanced credit accounts including balance transfer options and zero percent accounts.
Personal Credit Advice and Guidance, if necessary, in support of Business Credit