Entrepreneur | Glenn Croston
Not too long ago, credit for small businesses flowed easily with few restrictions. But that's not the case anymore. For some, obtaining credit can be as difficult as climbing a mountain. Others are afraid of assuming excessive debt or unfavorable terms.
But while the financial world has changed dramatically, the rules for credit are really not all that new. More importantly, credit can still be a powerful tool for small-business owners, when managed wisely. "There's a return to old strategies of building credit for your business," says La Mancha Sims, co-founder and CEO of Corporate Cash, a financial consulting company for small businesses and startups. "The rules that businesses used to follow years ago have returned, but some people are still having trouble adjusting."
Relearning how to build credit will make a big difference for your business in the years ahead. Here are four rules to follow: