How a Line of Credit Could Change your Business
You may think your small mom and pop business has no need for corporate credit. You use petty cash for expenses, your cash flow is very good, there is no need for credit, or so you believe. You may even have money to cover unexpected expenses that occur. Why apply for corporate credit? Corporate credit is not a bad thing. You could use a business credit card for gasoline purchases each month and pay the balance off every month. Many corporate credit cards offer cash back, money saving discounts or airline miles. Take advantage of these deals.
Just image how your business could grow if you had an extra $100,000 to invest in your business. A healthy business that starts cultivating business credit could have this line of credit one day. You don’t want the business to stagnate. No business can offer the same goods or services in the same store for years without change. You will lose business to new, more innovative retailers. Just think what $100,000 of corporate credit could do for your business. New lines of merchandise, new vehicles, television advertising or maybe even remodel the store. You could make your store more accessible to handicapped individuals and increase business. Finally you could do the things you always wanted to do for your business to help it prosper without using your savings or personal credit.
Even if you don’t see the need to change and grow your business, you will probably be retiring from the business one day. Suppose you pass it on to your children. If your business starts acquiring corporate credit now, they will be in a much better position to keep the business going. Just having available corporate credit doesn’t mean you have to spend it all; it’s just a good idea to have credit available.