Benefits of Business Credit

In a world where the traditional financial system is increasingly stacked against the average person, savvy entrepreneurs are turning to an alternative source of funding – business credit. At Abundance Codes, we’ve made it our mission to empower individuals to leverage the power of business credit to build their Vision – without risking their personal assets, investments or life savings. 

Why Business Credit?

Read on to learn more about all the incredible benefits business credit can provide. The list only gets better as you go!

Benefits of Business Credit 

Here are the key benefits of utilizing business credit compared to other personal or business funding options:

1. Separates Business and Personal Finances – Using dedicated business credit cards helps establish a clear divide between your personal and business finances. This makes accounting, tax planning, and overall financial management much easier and safeguards your personal credit. 
2. Faster Approval Process – Securing business credit is generally faster and more streamlined than traditional business loans or lines of credit, which often have lengthy application and underwriting processes.
3. Preserve Personal Assets and Credit – With business credit, you can access substantial funding ($200,000+) without putting your personal assets, like your investments or savings, on the line. This helps protect your personal credit score and financial standing.
4. Building Business Credit – Most business credit cards report your payment history and credit utilization to the major business credit bureaus like Dun & Bradstreet, Experian Business, and Equifax Business. Each on-time monthly payment you make on a business credit card gets reported, helping to establish and build your company’s credit profile over time. Eventually, with a strong business credit profile established, you will no longer need to be the personal guarantor (PG) of the funding, as your business will stand on its own. 
5. 0% Interest Financing – Many business credit cards offer 0% APR introductory periods ranging from 6 to 22 months! This allows you to finance projects, investments, or business growth without incurring high-interest debt.
6. No Collateral Required – Business credit cards are unsecured financing, meaning you don’t need to put up collateral like real estate or equipment to get approved. This opens up funding opportunities even for new or cash-flow-constrained businesses, and protects your assets in the worst case scenario of default.
7. Rewards and Perks – Many business credit cards offer robust rewards programs, such as cash back, travel miles, or valuable business services. These perks can provide tangible benefits to your operations.
8. Flexible Funding – Business credit cards allow you to access capital on an as-needed basis, rather than taking out a lump-sum loan or getting buried under double digit interest. This flexibility can be invaluable for managing cash flow and seizing opportunities. If you need funding and have credit, you can execute. If you have credit, and don’t need it, nothing happens, other than the 0% interest offer runs out. Fortunately, hundreds of banks have these 0% interest introductory offers. Just don’t get caught needing funding, but not having it. 
9. Payment Protections – Business credit cards provide robust payment protections that you simply don’t get with cash, checks, or even personal credit cards. If you encounter an issue with a vendor, the credit card company will generally side with you as the cardholder, as you are their customer, not the vendor. This can be invaluable when dealing with new or unproven suppliers. Many business cards also offer extended warranties, purchase protection, and other valuable perks that can save you money and headaches down the line. Leveraging these built-in benefits allows you to run your business with greater confidence, knowing your financial transactions are safeguarded.
10. No Financial Documentation Required – Securing financing through traditional channels like bank loans often requires mountains of paperwork – tax returns, financial statements, business plans, and more. This means you must be generating substantial profit on paper, and have the receipts to back it up. With business credit cards, the approval process is refreshingly simple and straightforward. The approval is primarily based on your personal credit profile and no proof of income, business revenue, or tax documentation is required. the legitimacy of your business entity, but don’t worry, we leverage out system, strategy and relationships, navigating the applications on your behalf to secure the funding you need to grow and scale your business.  This makes business credit cards an attractive option for new entrepreneurs, side hustlers, or established business owners alike, as you can quickly access the capital you need without the red tape.

By tapping into the power of business credit, entrepreneurs and business owners can unlock a whole new world of opportunity and abundance for their life and business. Now, you may be wondering, can I go get business credit cards myself?

Yes, of course you can. But the first question should be, how much funding do I want and need? Unless you’re a very well-established business, consistently making $1 million+, have deep credit industry knowledge, a pristine personal credit score, and relationships with senior banking managers, it’s very unlikely you’ll get any substantial amount of credit if you apply on your own.

Let me share a case study from one of our clients so you can see what I’m talking about. Vince, from Fresh Steeps, was at a standstill in his business, ready for launch but without the capital to do so. He was considering giving up equity in his company to investors or taking money out of his home or investments. Yikes!

Instead of that, we’ve got him the $100,000 in funding he needed to launch his product in the market, and he only spent a few hundred dollars of his own money. Before working with Abundance Codes, Vince applied for a Chase Business Credit Card on his own and received a $5,100 limit. After working with us, we got him approved for an $80,000 Chase Business Credit Card – 0% interest for 12 months!!! That’s a more than 15x difference.

Because of our system, strategy, and relationships, we’re regularly seeing clients get $50,000+ from a single bank. So you could go out and get your own business credit, but if you want more than $50,000, it’ll be very difficult to get that amount on your own. If you need more than $100,000, it would be near impossible. That’s where Abundance Codes comes in.

If you are an entrepreneur looking to go all-in on your business this year, STOP spending your own money! And for the love of all things holy, please DO NOT risk your investments or take equity out of your home! Investments are for growing wealth, and business credit is for starting and scaling your business.

Ready to unlock abundance? Schedule a Free Credit Strategy Call and take advantage of all of the benefits business credit has to offer now.