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TCCDepot 7th June 2012 11:27 AM

The 9 Most Devastating Mistakes Business Owners Make, Financing Their Businesses
 
Special Alert Bulletin for Entrepreneurs and Business Owners Who
Need Business Financing …


The 9 Most Devastating Mistakes Entrepreneurs and Business Owners Make When Financing Their Businesses … and How to Avoid Them

Which of these all-too-common mistakes will cost you your business, peace of mind … and even your home? Find out inside – and also discover how to get financing for your business… WITHOUT Risking Your Personal Assets, Lowering Your Personal Credit Score, and eventually, without a personal guarantee.


Devastating Mistake #9
Using personal credit to finance your business



The hands-down biggest and most common mistake entrepreneurs make is using personal credit to finance their businesses. Common examples include:

• Paying for business expenses with your personal credit cards

• Obtaining personal loans to finance your business expense

If you’ve used one or more of these financing methods to fund your entrepreneurial ventures, I’m not surprised. Shockingly, many business-start-up experts recommend these methods for funding new businesses.

Their advice is well-intentioned … but nonetheless incredibly dangerous. The reason for not using your personal credit for business purposes is simple: You WILL destroy your personal credit. It’s inevitable.

By using your valuable personal credit for business expenses, you run the risk of:

Lowering your personal credit score. When you personally guarantee business-related financing, the lender will require a personal credit check. Every time an inquiry into your credit history is made, your personal credit score takes a hit. The lower your score drops, the harder it is to secure financing…especially financing with the most favorable terms.

Reducing the amount of credit available for personal use. The more credit you have personally guaranteed for your business, the higher your debt-to-income ratio soars … and the less that lenders will be willing to give you for personal use. Signing that loan for your business could prevent you from getting a mortgage on the new house you plan to buy a year from now.

Losing everything. When you use your personal resources or credit to finance a business, you chain your financial security to your company’s success. If the company fails, you’ll be left holding the bag … and your personal finances will sink along with your business. You’ll never recoup the “loan” you took from your retirement account to get your business launched. Creditors will be calling you for payment. And if things get bad enough, you may have to declare bankruptcy.

To protect your financial security, don’t use your personal credit to finance your business activities. Instead, take action to secure credit in your company’s name – WITHOUT Risking Your Personal Assets, Lowering Your Personal Credit Score, and eventually, without a personal guarantee.


If you would like to continue reading this article, you can click on the following link:
9 Mistakes Funding Your Business

I hope this information is valuable to everyone. Our company knows that small businesses are having a tough time and that the government hasn't done much to help us out. That's why we have tried to step up our game, get information out to the public, and help as many small businesses or business owners as we can. Business Credit will help turn this country around and get the unemployment rate down. We as a whole need to learn how to spread the word and get involved with Corporate Credit & Business Credit. For more information on our company, what we do, & how we can help you, please see the links below. Have an amazing day everyone!


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