Whether you’re a enterprising entrepreneur or a resourceful investor, funding your business or your investment needs can be elusive.
There is no shortage of methods that can be used for corporate financing:
- personal savings
- retirement provision
- personal credit cards
- Lines of credit for personal assets
- private money or partner
- Business / personal loans
However, these methods may be limited in number and / or require sophisticated skills. Worse still, some methods require you to use YOUR money.
Personal capital should be an entrepreneur or investor’s last resort.
Here’s a smarter option: Business credit with personal guarantee. This is the path of least resistance.
3 reasons why you should choose business credit with a personal guarantee:
1. Minimum qualifications
Qualification with a personal guarantee is straightforward. There are only two requirements: good personal creditworthiness and a healthy projected income. Lenders want to know how well an applicant has managed their personal funds and whether the applicant is able to generate significant income from their company’s products or services.
2. Fast transfer of funds
Business credit refers to securing credit cards under your business unit. Usually, financing with a personal guarantee is quick and seamless. There are no long waiting times or exhausting application processes. Do you remember how quickly credit decisions came back after applying for personal credit cards? Business credit decisions work the same way. Some decisions are made instantly while others take a little over a week.
3. NO attachment to your personal credit file
As a business owner / investor, it is best to keep your personal funds clean. A clean credit profile distinguishes you as an attractive business partner and ideal loan candidate. The benefits of a great loan are endless. Fortunately, business loans can help you maintain high personal credit while also getting access to the capital you need. Although you personally guarantee money, business credit will not show up on your personal credit record unless you are in default. The minimum payments required are non-negotiable.
The requirements for business loans with a personal guarantee are minimal. However, a simple application does not guarantee maximum funding. I suggest consulting an expert or a professional service. They should be able to help you qualify and ensure maximum funding.
Always evaluate the potential costs associated with your chosen financing option before making any decisions.
Raising capital doesn’t have to be stressful or time consuming.
Don’t let annoying loans hold you back.