Last updated on June 4th, 2025 at 10:54 am
Most every adult in America is familiar with how personal credit works.
You start with no credit whatsoever, you apply for a credit card at your own personal local bank, and most likely you will get approved for a credit card with a small credit limit, and then you start to build your very own credit score.
As your good credit history grows so does your credit score, and your credit limit will increase, and soon you will qualify for personal loans, auto financing, and even a mortgage.
It is what we all know of as a ‘process’… it takes time.
Business Credit is not that much different.
Rather than applying for ‘personal credit cards’ and ‘store credit’, you apply for ‘vendor accounts’ under your business name, and once you build up enough ‘vendor accounts’ you can then apply and qualify for business loans, auto financing, and real estate loans, all under your business name.
There are some very significant advantages to building up your business credit.
First of all, if you have established good personal credit, and you build up your business credit, you now have doubled your borrowing power, because now you can use your business credit to make purchases for your business, and then, you can use your personal credit to support your business with more credit if needed, sort of like being your own cosigner.
Another benefit is that when you build your business credit ‘the right way’ you won’t need any personal credit background checks.
This is great if your personal credit is not in the best of shape, but even if your personal credit were in excellent shape, you can eliminate any personal responsibility towards your business debts.
Too many Small Business Owners (SBOs) never bother building business credit, instead, choosing to support their business on their own personal credit.
This is very risky business and can get SBOs into some very serious trouble as they not only put their own business at risk, but also, their own personal assets, like their homes, their personal cars, their personal bank accounts, and can very easily lead to filing for personal bankruptcy.
By building up your business credit, all of this potential tragedy can be avoided, as you can build a business that is self-sufficient and liable for its own debts.
Another benefit of building business credit is that business credit limits typically are 10-to-100 times greater that personal credit limits, which gives the business much more credit purchasing power on its own.
Personal credit usually takes about 6 to 12 months to build a positive credit score and credit limits can be as high as $5000 to $8000.
With business credit, it takes much less time, usually about 3 to 6 months, and credit limits can be approved for as much as $10,000 or much more, and with business credit, you may even qualify for some very generous terms and rates on a high Line Of Credit (LOC).
Building business credit can definitely be a strong business asset, so get started quickly to building your business credit now for a strong and prosperous business future.
RevitUp Capital can help you on your journey towards building strong business credit so that you can get access to the capital that you need.
We offer a Credit Builder to build (or rebuild) your Personal Credit or to build your Business Credit.
