I want to talk to you about a myth and the myth is business credit. And there are lots of programs out there we pay a lot of money in they build your business credit and they get you credit cards in your business and they do all of this so that you have business credit.
What’s business credit?
Well, that’s that you can go down and you can pick up supplies at the local hardware store or the office supply store whatever it is — on account.
So you need business credit and you can get on a line of credit. And that means you can, you know kind of borrow money and on demand basically. Or you just need to borrow money in your business
Why is all this — I’m saying it’s a myth?
Well, you paid the guy a lot of money to build up your business credit. And there are a lot of programs out there and they’ll build your business credit. American depressed, I mean express– they’ll build your business credit.
It’s a bunch of bull, guys. I got news for you. Unless you are IBM and have six trillion dollars behind your business, you will always sign personally on that account.
Now, exactly where did business credit get you?
You still signed personally. So it’s your personal credit that we’re going on. It isn’t ever the businesses credit. And you’ve got to have millions and millions of dollars passing through your business before your business can actually go down and on its name get an account.
Otherwise, you signed personally. You’re always going to sign personally. If you’re a real estate investor and you’ve got your little business or you’re a contractor, you’ve got your business, whatever it is you sign personally.
So explain to me exactly why business credit is so critical?
No. It’s your credit. If you’re a small business person and that’s really a pretty big business even but if you’re a small business person you’re signing in person. End of discussion.
So I’m not too in favor of you going out and spending a lot of money for one of these groups to get your business credit.
You’re going to sign personally anyway.