Building Credit as a Sole Proprietor
As a sole proprietor, building business credit can seem challenging, but it is possible by following strategic steps. The key is to separate personal and business finances, which involves opening a business bank account and obtaining a business credit card.
Advantages of Separate Credit
Keeping personal and business finances separate not only helps in building business credit but also protects personal assets from business liabilities. This separation makes financial management more straightforward and professional.
Using Credit Wisely
Using credit wisely is crucial for a sole proprietor. This includes making timely payments and using a smaller portion of your available credit line. These practices positively impact your credit score and build your reputation with creditors.