Credit Mistakes Can Cost Business Owners Vital Financing

Credit Mistakes Can Cost Business Owners Vital Financing

SAN DIEGO, Feb. 8 /PRNewswire/ -- Nearly 80% of small businesses use some type of financing to grow their small business, including credit cards, mortgages, and business loans. But if business owners aren't careful, they can make costly credit mistakes that can rob their business of the funding they need to grow, according to attorney Garrett Sutton and credit expert Gerri Detweiler. Sutton and Detweiler are coauthors of Insider's Secrets to Business and Personal Credit (www.BusinessCreditSuccess.com).

They point out common credit mistakes business owners make:

Building business or personal credit, but not both. Business credit and the personal credit of business owners is highly correlated, according to a recent study by credit reporting giant Experian. "Smart business owners know both strong personal and business credit are essential," says Detweiler. She advises business owners to take advantage of the new federal law that gives consumers the ability to review their credit reports for free once a year at www.annualcreditreport.com.

Borrowing the wrong way: Many entrepreneurs have no idea how or where to look for business financing. They end up maxing out their personal credit cards or home equity and putting their personal finances at risk. Business owners who structure their business properly, however, and take the right steps to build a business credit rating will be able to borrow without risky personal guarantees.

Falling for scams. Some companies will encourage consumers to get an Employer Identification Number to replace their Social Security Number, and use it to establish a new credit rating. This scam is so common that even the Federal Trade Commission warns against it on their web site. Another scam encourages businesses to "buy" a good credit rating, sometimes for thousands of dollars.

Garrett Sutton is a corporate attorney and host of the Garrett Sutton radio show on wsRadio.com. wsRadio streams live via the Internet and is archived for listening on demand 24/7. Sutton's show regularly offers key business strategies for success. www.successdna.com

Also on wsRadio, Gerri Detweiler is one of the nation's leading credit experts and host of EverydayWealth Radio: Your Consumer Advocate. Business owners can visit www.BusinessCreditSuccess.com for more information about building business credit.


Source: wsRadio.com

CONTACT: Gerri Detweiler, +1-877-683-9343 or +1-941-227-4496, for
wsRadio.com

Web site: http://www.annualcreditreport.com/

Web site: http://www.businesscreditsuccess.com/

Web site: http://www.successdna.com/


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