Whether you are an entrepreneurial entrepreneur or a resourceful investor, financing for your business or investment needs can be elusive.
There is no shortage of methods that can be used for corporate finance:
- personal savings
- retirement savings
- personal credit cards
- lines of credit on personal assets
- private money or partners
- business / personal loans
However, these methods can be limited in quantity and / or require demanding qualifications. Even worse, some methods require the use of YOUR money.
Personal capital should be the last resort of any entrepreneur or investor.
Here’s a smarter option: business credit with personal guarantee. This is the route with the least resistance.
3 reasons why you should choose business credit with a personal guarantee:
1. Minimum qualifications
Qualification with a personal guarantee is simple. There are only 2 requirements: a good personal credit and a healthy expected income. Lenders want to know how well an applicant has managed his personal resources and whether the applicant can generate significant income from his company’s products or services.
2. Rapid transfer of funds
Business credit refers to securing credit cards under your business entity. Usually financing with a personal guarantee is quick and seamless. There are no long waiting times or heavy application processes. Do you remember how quickly credit decisions came back after you applied for personal credit cards? Business credit decisions work the same way. Some decisions are made immediately, while others take a little over a week.
3. NO attachment to your personal credit file
As a business owner / investor, it is good practice to keep your personal credit clean. A clean credit profile characterizes you as an attractive business partner and ideal credit candidate. The benefits of a lot of credit are endless; Fortunately, business credit allows you to keep a large personal credit while still getting access to the capital you need. Although you provide personal guarantees, business credit will not appear in your personal credit file unless you default. Making the minimum required payments is non-negotiable.
Requirements for business credit with a personal guarantee are minimal; However, a simple application does not guarantee maximum funding. I recommend to consult an expert or a professional service. They should be able to help you qualify for and secure maximum funding.
Always evaluate the potential expenses associated with your selected funding option before making decisions.
Raising capital doesn’t have to be stressful or time consuming.
Don’t let slowing loans slow you down.