Getting Started with Business Credit

Net Profit Podcast- Accelerate Your Profits with Ryan Kimler

In this solo episode, we dive into practical ways to build and protect your business credit, helping you set up a strong financial foundation. We share tips on separating business and personal credit, avoiding high-risk loans, and laying the groundwork for securing a traditional line of credit that can support your business as it grows.

In this episode, Ryan discusses:

• Separating business credit from personal credit
• The challenges of obtaining traditional business credit for new businesses
• Risks associated with non-traditional business funding options
• Steps to build and improve business credit over time

Key Takeaways:

• Business owners should carefully review their existing credit cards to ensure they are not personally liable, as this could expose them to significant personal financial risk if their business fails.
• It is advisable to secure a home equity line of credit before starting a business, as most banks will not extend traditional business loans or lines of credit to companies that have been operating for less than two years due to perceived risk.
• Business owners should avoid high-interest, non-traditional funding options like hard money loans and instead focus on building their business credit through microloans or secured credit cards, which can establish a solid payment history.
• After reaching two years in business, owners should present financial documents such as tax returns and profit and loss statements to a trusted banker to secure a traditional line of credit, which is crucial for maintaining cash flow and supporting business growth.

"Everyone’s goal should be to have a business line of credit that they can draw on when needed." — Ryan Kimler

Schedule your free 1:1 Profit Breakthrough Session with Ryan here: https://go.oncehub.com/profit

Connect with Ryan Kimler:

Net Profit CFO Home Page: www.netprofitcfo.com

Email: [email protected]

Facebook: www.facebook.com/rkimler

LinkedIn: www.linkedin.com/in/ryankfinancialclarityllc/

LinkedIn NPC Company: https://www.linkedin.com/company/netprofitcfo/

LinkedIn FC Company: https://www.linkedin.com/company/financial-clarity-llc/

Show notes by Podcastologist Andy Santiago

Audio production by Turnkey Podcast Productions. You're the expert. Your podcast will prove it.