Sentences with phrase «own personal credit»

This is similar then, in many ways to a personal credit report, such as the one which a bank will view when deciding whether or not to approve a mortgage.

According to the Wells Fargo / Gallup study, women business owners said their top three sources of initial funding for their business are cash or savings (85 percent), personal credit cards (37 percent) and financial gifts or support from family or friends (29 percent).

«If a business owner hasn't shown the diligence in managing their personal credit, there is potentially a stronger likelihood that they will take the same approach to their business credit,» he says.

Your personal credit score will have an enormous impact on your business's eligibility for business loans — plain and simple.

Bankers look at your personal credit history (credit cards, mortgage payments and personal bills) to get a sense of your track record with financial responsibilities, says Michael Toth, Senior Vice President of Business Banking at KeyBank.

Mistake # 1: Underestimating the value of personal credit.

Data shows that higher personal credit scores are correlated with better eligibility for business loans, lower interest rates, and larger loan amounts.

Business owners who can maintain good business and personal credit scores have a great advantage because they will have many funding sources from which to choose.

Take the time to build a credit profile for your company, so you don't jeopardize your personal credit.

This could leave your business wide open to issues such as a negative impact on your personal credit report, ultimately hurting your ability to borrow money for yourself.

Many business owners are unaware that they should be establishing credit for their companies in addition to personal credit.

Personal resources might include an owner's savings and access to personal credit.

While relying upon personal resources may be common, it's also limiting to entirely rely upon personal credit and assets for a few reasons:

Whereas successful companies have «experience navigating the lending landscape, more available credit and frequently monitor their business cash flow,» according to the report, underperformers suffer from «less knowledge about financing products, lower personal credit scores, less access to financing and fewer formal financial management practices in place.»

Bank loan: You'll need excellent business and personal credit to qualify for an SBA - backed bank loan.

In addition, the study determined that the last time the small business owners surveyed had needed funds, 62 percent had withdrawn personal savings, 22 percent had used business credit cards, 24 percent had used their personal credit cards and 10 percent had relied on family and friends.

Lenders will look at your personal credit score and ask for a personal guarantee to back their capital.

In 2005, CouponChief.com co-founders Gary Gray and Kyle Hoggatt, both 29, used personal credit cards to start their website, which features various coupon codes.

Then follow these simple rules: Don't use your personal credit card for business purchases unless you file an expense report, and go through proper channels to get reimbursed.

Make sure you're timely with any mortgage, rent, utilities or credit - card payments, as they all affect your personal credit score.

Last year, the central bank sounded an alarm, ranking the expansion of personal credit as the biggest threat to the economy, which is why everyone was shocked when Poloz suddenly cut interest rates in January.

When FedEx's cash reserves had been depleted to just $ 5,000, the company started asking pilots to use their personal credit cards and uncashed paychecks to fuel their planes.

If your business accepts credit cards, this may be an option to consider if your personal credit isn't the best and your business needs cash quickly, Lankler says.

Fortunately, thanks to new offerings, business owners who balk at the idea of letting their businesses influence their personal credit ratings now have other options, such as debit cards or secured cards.

As owner, you'll also need to provide your social security number and personal credit score.

But be forewarned: Unless you've been in business at least two years, McKinley says, issuers will typically want to hang the account on your personal credit, which means you may be liable in the event the account defaults.

That said, this is No. 10 on our «get» list, because the interest rate on student debt isn't as onerous as personal credit card debt, but we do find it a bit depressing that our list is bookended by debt!

Research shows that if you only use «we,» you may not get personal credit.

But unlike traditional business lenders, «we are underwriting on their personal credit information, not based on the business itself,» Lensing says.

You can help build your business's credit by making sure your personal credit score is top - notch.

That said, there are plenty of successful businesses that depended on their founders» personal credit cards during their early days.

Still, the temptation now to use historically low - interest money from mortgages, personal credit lines and 401 (k) plans to invest in the stock market is great, especially as the Dow is reaching historic heights at more than 26,000 — a milestone unfathomable in 2009, during the Great Recession.

Learn why it's important to establish a business credit report separate from your personal credit and just how to do it.

Brad Close, the NFIB's director of public policy in the House, said it was a straightforward piece of legislation to address the needs of entrepreneurs who use their personal credit cards for business.

Barnett notes that if you have not positioned your personal credit such that a bank will see you as a strong enough credit risk, they won't lend to you.

The role the personal credit card has played in the early financing of small businesses is being neglected.

Try to avoid using your personal credit history or personal guarantees and work on building a good business credit profile now, before you really need it.

But if your small - business credit card is guaranteed by your personal credit — the case for all sole proprietorships and some recently incorporated businesses — the protections covered by the new legislation will apply to your card as well, so no need to switch.

Odoi - Atsem funded the startup by maxing out his personal credit, and the business has since grown into an $ 8.2 million venture.

Knowing your personal credit score is helpful.

This goes for your personal credit score and your business credit score.

As with personal credit, you can find your business credit score through Experian, Transunion or Equifax.

Until your business reaches a substantial size ($ 5 million to $ 10 million in annual revenue or more), the bank is going to rely heavily on your personal financial statement and personal credit score to determine the creditworthiness of your business.

Bankers may want to look at your «global financial statement,» including personal information like outstanding student loans, personal credit card debt and mortgage payments.

«Even if you have stellar personal credit and good assets, if a lot of business contacts are saying you're paying them late, that's going to scare off lenders.»

In the extreme beginning when investors are thinking about whether to invest in you, your personal credit score matters.

While a personal credit card may seem like an easy source of cash for your business, you can quickly incur high interest costs, says Steve Gustafson, principal at Abeles and Hoffman, a Saint Louis - based accounting firm.

But as you continue to grow your business your personal credit score becomes less important.

I have had things like people who never paid their taxes, people who lied on the show, people who didn't think that if they spent money on their personal credit cards it should be considered an expense.

Often, small - business owners don't consider how their company can affect their personal credit rating, says Bill Collier, author of How to Succeed as a Small Business Owner... and Still Have a Life (Porchester Press, 2006).