Corporate Credit

Advantage of Having a Business Credit Profile
Just by building a business credit profile you will be able to limit the use of your personal guarantee and build business credit regardless of your personal credit history.

The following is a list of conveniences and advantages you will have available because of your Business Credit profile.

You will have more cash for the business
Convenience in purchasing
Protection of your personal assets from that of the business
Limit your personal liability from the business
No need for personal credit checks
Purchase vehicles with no personal guarantees
Purchase equipment, computers and more with your business credit
Preparing your business for future lending needs

Separating Business Credit from Personal Credit
Many small business owners are unaware of their ability to build a business credit profile so they can stop using their personal credit to fund their business. You can separate your personal liability and protect your personal assets from that of the business just by incorporating. It is possible to build a business credit profile for a sole proprietorship or partnership, however you are still responsible for all the debts of the company. We recommend building your business credit as a corporation or limited liability company. The main advantage of forming a corporation or LLC is that you can separate your personal assets and liabilities from those of the business. If the business incurs a debt that it is unable to repay, your personal assets (house, car, belongings, etc.) are not at risk.

Here are some other advantages to forming a corporation or LLC:

Separates you from your business
Limited liability of the owners and officers
Lower tax liability
100% tax deductible insurance
Reimburse 100% of medical expenses
Corporate image
Raise capital and build credit faster
Lower your audit risk as a small corporation
Stock ownership - easier to transfer assets

Protect Your Personal Assets
Here is a common scenario that we run into here at INCORP America. You are a small business owner with decent/good credit. Your business has just recently gotten started and you’re still in need of new equipment/supplies. You purchase this equipment with your personal credit, just like you would any other purchase. What you don’t already know is that the average American only takes one major loan on their credit per year.

Not long after this initial purchase you end up needing to purchase other products for your business, so once again you use your personal credit. After doing this a few times during the course of a year, your credit score starts dropping. Just by being a responsible business owner and purchasing the necessities for your company, your personal credit is slowly but surely getting ruined.

It’s at about this time that you discover your ability to starting building credit under your business’ name, which will allow you to protect your personal credit, and your personal assets.

On average, the program takes six months to complete, but with determination it can be completed in considerably less time. By the time you have completed the program you should have a business credit score of at least 80, which is equivalent to a FICO score of about 800.

Based on this business credit score, you will be able to obtain loans and funding from a variety of sources. For more information on this, or any of our other products and services, please call us toll free at 877.6.INCORP.