Business Credit - The Key to Expansion

Introduction: Stop Using Personal Credit for Business

If you are using personal credit cards for business expenses, you are doing it wrong. Business credit allows your company to operate without relying on your Social Security Number.

Step-by-Step Breakdown of Business Credit

1. Establishing a Business Credit Profile

• Open a business bank account.

• Register with business credit bureaus (Dun & Bradstreet, Experian, Equifax).

2. Obtaining a DUNS Number

• A DUNS number is required for business loans and government contracts.

3. Setting Up Net-30 Accounts

• These accounts allow you to buy now and pay later, helping establish credit history.

4. Building Business Tradelines

• Having multiple credit accounts builds a stronger profile and increases funding opportunities.

Why Business Credit is Essential

1. Separates Personal & Business Finances – Keeps your personal credit intact.

2. Secures Funding – Business credit opens doors to lines of credit and loans.

3. Builds Financial Freedom – Using OPM (Other People’s Money) fuels business growth.

How Business Structure Affects Credit

LLCs require personal guarantees for loans, while C-Corps can secure credit independently, reducing personal liability.

Case Law Supporting Business Credit Separation

Perpetual Real Estate Services, Inc. v. Michaelson Properties, Inc., 974 F.2d 545 (4th Cir. 1992) – The court emphasized corporate separation in liability and credit matters, showing the importance of structuring correctly.

Conclusion

Building business credit is crucial for growth. Need help establishing business credit? Contact MAC Enterprise Consulting today!