Why is business credit important?

 

Business credit can be one of the most important attributes your new or existing business ever has. It can be a lifeline, providing you with access to the cash and/or resources you need to sustain and grow, today or in the future. Business credit can also insulate you from personal liability if your business ever gets in trouble. Because your business credit is not tied to you personally through your Social Security Number, your business is solely liable for its financial responsibilities. Establishing a business credit score can be vitally important. Most business owners will need business credit and/or trading partners to build or grow their businesses. It isn’t unusual for customers and prospects, including potential investors, to inspect your business credit to assess the financial stability of your company. A poor credit history, or no business profile, could make your business look like a high-risk endeavor.