As an entrepreneur, you’re hardwired to enjoy a greater level of risk than the average person. But do you love that thrill enough to risk:
- Being hounded by creditors?
- Declaring bankruptcy?
- Being denied a mortgage?
- Paying more than your fair share of interest on your loans?
- Losing your assets?
The truth is, many budding entrepreneurs make the mistake of using their personal finances to fund the launch, operation or growth of their business – only to feel the devastating consequences much later on.
Some realise they’re making a mistake but manage to lull themselves into thinking that the consequences will be minor. That is, until one day they can’t qualify for a mortgage. Or they can’t get the financing offered on the new product they’re purchasing. Or they’re hounded by creditors and eventually have to declare bankruptcy.
Using personal credit cards to pay for business expenses is a big no no. If you are in business or thinking about starting a business, business credit is a must.
Most business owners have no idea that they can establish business credit and even fewer know how to establish business credit. Owners need to take the time necessary to educate themselves about establishing credit, and this way they would no longer have to use their personal funds for startup capital or working capital.
Business credit is a must for every business owner. There’s no sense in putting your personal assets at risk to fund your business.
On the other side of the coin, startups with merchant facilities should educate themselves on products available to them that get funds into their hands as soon as possible.
When it comes to taking credit card payments, for a new business waiting on funds to land in your account can be a nightmare. In the initial phases of your business having the cash in through the door as soon as possible is a priority.
Startups should look for a banking institution that offer same day or minimal settlement terms for cash coming in to free up working capital for their business, this will reduce the stress that you would be tempted to place on your credit facilities personally and increase the prospects of profitability in your business.
“An ANZ Small Business Specialist can assist you with every aspect of your business finances, including managing your cash flow, applying for a business loan, consolidating your banking and streamlining your accounts. If you would like to find out how you can grow your business through finance please go to www.twobillion.anz.com to find out more”.