Business credit and personal credit are very different. It does not matter whether you are a sole trader working from home, or setting up a limited company, the principle is the same – keep your credit arrangements separate and it keep it that way!
Natuarlly the type of business you are running and your personal circumstances will dictate the options open to you. There are any number of categories of business and a each will have its own peculiar credit needs. This site is split up into the different types of finance you are likely to encounter, and the best ways to get business credit.
Business Credit Cards
Business credit cards can help with cash flow, although interest rates can be higher than other credit cards. A company credit card can be a useful way to manage employee expenses, especially if they are traveling.
Pre-pay business credit cards are becoming increasingly popular, particularly for business with a poor credit history.
Business Loans and Leasing
At various times during its growth most businesses will need to raise finance to finance growth or purchase new equipment. One alternative to business loans is leasing. Leasing has the advantage of being secured on the asset which means that it is a viable option for young businesses or company with a bad credit history.
Business Mortgages
Unlike residential mortgages commercial mortgages are unregulated, which means that there is an element of “buyer beware”. The business mortgage market is slowly starting to recover from the credit crunch of 2007 onwards, and whilst there are still a few hurdles to overcome there are still ways to raise a business mortgage.
So have a look about and please ask a few questions.