Will a Corporate Credit Service Help the Future of Your Business?

How to avoid navigating the credit maze.

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Owning your own business is, for most people, the ultimate American dream. The U.S. Small Business Administration (SBA) reports that more than 600,000 new businesses are started each year. Unfortunately, of that number, more than half will be out of business by the end of the first year. Making matters worse is the fact that only 20 percent of businesses will still be running by the end of year four.

The number one reason these businesses fail is a lack of capital, including their inability to get needed credit and operating funds.

Most business owners understand and anticipate the need for money in order to start a business. The trouble begins when they fail to understand and prepare for cash needs as they continue operating their business. Unfortunately, without making the effort to apply for business credit, the chances are that a business operated by very capable people will find the business strapped for cash. As a result the business may end up closing its doors.

One scenario that is very common for business startups is that a new owner might borrow the initial funds from a friend or family member, which is often adequate for the time being. Unfortunately, without applying for business credit simultaneously, by the time the initial funds run out, funds that could have been gained from business credit won't be available for use.

Another reason why business owners are often hesitant to establish business credit is that they overestimate the revenues that they are anticipating as a result of operations. They fail to realize that most businesses don't earn a profit for the first two or more years they are in business.

Further, they anticipate that future business will be all they need to meet their financing goals.

This is often not the case. For example, despite the fact that an owner opens a business and might even enjoy a profitable first few months, unforeseen expenses almost always arise, cutting the cash inflow that could very well save a business.

Taking the necessary steps to ensure that this credit is available if and when it is needed is an important strategy for long term business survival. Simply stated, establishing adequate business credit is an important step in ensuring the future of your company.

Another reason that many business owners fail to secure business credit before or even when it is needed is due to a lack of understanding of how to get that credit. This is where corporate credit services can be a lifesaver. These services are literally available to help you navigate the credit maze to help you get business credit, whether you have an immediate need for it or not. With these services, you can literally have a full company credit profile in a very short time, ready to help you when you need it.

These services are in the business of helping you get credit, from the ground up, regardless of your current credit situation. And because those who run this service are knowledgeable and experienced with the business credit industry they can advise you on what you need to do to get credit for your company.

One way that these services work with you is ensuring that your current business has the necessary foundation prior to applying for credit. Obtaining lines of credit without putting your personal credit at risk can be accomplished by using the assistance of these services.

By taking advantage of corporate credit services you can have a credit profile in the works in a matter of days, with an established profile within weeks. All you really need to begin is a formally established business entity, a tax ID number, and a business bank account. After these are obtained, you can add references and all of the other necessities to have your credit established before you know it.