They have offered it to you and you know it won’t be easy, but a card for your business could help you solve many problems. There are more benefits of using a business credit card to finance your business than disadvantages. Credit institutions have several products and solutions but you must be careful in choosing the most convenient for the dynamics of your company.
One of the most important issues is to separate personal and corporate credit and here are some advantages
- In principle, it offers better payment terms and larger lines of credit.
- Leasing of cars or machinery does not require verification of personal credit.
- Pay for productivity and not for spending as it takes care of capital and the flow is invested in the company, not in you.
- It is cheaper and offers high profitability throughout the process. From the acquisition to the liquidation.
Your company requires its own history
All institutions, potential investors and even some clients review the background of the companies before building a relationship. There are even clients in the public service who require a credit history before signing any contract. That speaks of the completeness that the company has since if it has a bad track record, it will be more likely to look bad with other commitments.
Personal credit should not be used to solve the company because if the company cannot make the payments, the signer will have all the commercial responsibilities. And if the record is bad, it will carry that stigma long before it can have its record clean again, in addition to the legal implications it may entail.
Those who review this aspect in your company will verify from the available credit
What is owed, payment history and cash flow among other indicators. It’s not just about paying on time, but knowing how to use it wisely. Business credit lines can be the strengthening that your company needs.
Before hiring it, review all the conditions and possible scenarios well in case you cannot pay on time or if so, what are the rewards that the institution has for its clients. Have you already applied for your business credit card? We invite you to learn more about the benefits you can get with the Banco Industrial business credit cards.