Did you know that 56%* of company owners have used their own money to support their business, with the average amount invested being £22,700? It’s certainly true that many small business owners use personal credit to run their business.
However, if you are a sole proprietor, your personal credit and your business credit are closely linked in the eyes of banks and other lenders. So it is important to take steps to protect both. You should monitor, evaluate and protect your credit standing just as you would protect any other business or personal asset.
Many creditors today are moving away from relying on personal credit alone when judging a business’s financial health since personal credit is not considered an ideal predictor of business behaviour. Furthermore, smart creditors are taking advantage of new blended commercial scoring tools that integrate both personal and business credit attributes to assess and predict small business risk.
Protect your personal finances…ensure your business credit profile is the best it can be and give yourself the best chance of getting the finance you need.
Source: * Yahoo Finance UK, 13/02/14 SMEs rely on credit cards to grow their businesses