Your puny
credit card may be the answer to your business finance dilemma. Your credit
card, along with other business loans, helps increase your credit score if you
manage it perfectly. If your business also works with vendors who report to
credit institutions, then your scores could increase.
During your
non-entrepreneurial years, the use of a credit card under your name, and the
management of this credit card, will already create an impact in your credit
score. When you get financing for a new car or mortgage for your house, your
credit score resets to accommodate your performance with the new financing.
A start-up company still has no financial
background, but lenders and vendors may consider financing the company based on
the proprietor’s credit history.
A higher
funding from your credit card can help propel your company a long way. As long
as you have not missed a payment and you pay the exact amount regularly,
lenders will improve your standing and provide financing for the improvement of
your business.
However, as
it is only personal credit, the loan may be quite limited, but it will grow as
your business shows results through its invoices.
