Answer: If you plan to borrow regularly, you should establish separate credit for business purposes.
You’ll need to use your personal credit when the business is young, but you should also build credit for business loans as soon as possible. The goal is to separate your personal financial affairs from the business.
If you have business credit, you’re less likely to ruin your personal credit if the business hits a rough patch. Likewise, personal struggles are less likely to bring business borrowing to a halt - which would make it harder to operate and get back on your feet.
Separating credit for business and personal use also gives you flexibility that may come in handy as your business grows. For example, you can sell the business more easily if it has strong credit.
Find out more about credit for business and how it can help:
