They have their own opinions expressed by business partners.
When I started my first business, I had everything – or so I thought. I was young, trusting and encouraging. As I grow up on a form of Adho, I was taught that I could work hard since I could walk. Through college, I had already gained industry experience from working in an electric sign company, and now I was launching my own.
I thought my work would take the morality and skills of the day. And for a while, they did.
But what doesn’t tell you – what I have hardly learned – that’s what you can fix everything, and still break. On paper, my business was successful. In fact, I was a bad invoice far away from destruction.
When the original struggle began
Within a month, I applied for the SBA loan and rejected. I assumed that I would get commercial credit from the shopkeepers – there is no luck there. I had no credit history. Not a bad reputation. No credit. I was picked up to believe that the debt was dangerous, so I completely avoided it. I paid cash for everything, even my car. I thought it was responsible. It turns out, he made me hidden for lenders.
And at the same time when the truth was affected: Every dollar had to come out of my own pocket. I was constantly suffering from cash. Hundreds of thousands of accounts are received – and nothing in the bank to cover the payroll or rent. I remember sleep nights, stress headache, panic to wait for payments, which I could not do. I was doing well, but I couldn’t prove to anyone that I was able to trust.
Related: SBA Loan: A full leader for small business owners
How I turned it up
Finally, I realized that the problem was not personal – it was systematic. Lenders and shopkeepers were not unfair. They had no data to go yet. No one knew that I paid the bills on time, because I never gave them a chance to know.
So I started building my credit history, step by step. I applied for a credit card. I opened the small lines of credit. I paid everything every time. I learned how a business credit score works – and how to separate personal and business credit properly. At that time, it was difficult to get good information. Today, there is no excuse. Tools, platforms and expert guidance are present everywhere.
Whatever I had to do through a test and error, most business people can now learn the weekend.
Why credit is not optional
If you are making a business, the strong credit is just “good”. This is a growth engine. It lets you borrow at low rates. It opens the commercial credit so you can stock your bank account without extracting. It improves your insurance rates and lease terms. It strengthens your reputation with shopkeepers, consumers and partners. Want to win official contracts or work with big clients? Good luck without a solid business credit score.
Even when your credit is in good shape, payment processing is easy and affordable.
Bottom line: Your credit tells the world whether you are reliable – and in business, trust is everything.
Related: How to Fund Your Business with SBA Loan
Techway
Most of the hard work is important. You also master. But if you ignore your credit, you have been sticking to your difficulties since day one.
I learned this lesson in a painful way. You don’t need
Start building your credit history now non -personal and professionally. Don’t wait until you need financing to realize that you are hidden for lenders. Know how business credit works. Use the tools you available. And control one thing that can make or break your business long before you see your product in the daylight.
Trust me: A sleep night is much more than cash flow.