Fitness Equipment Leasing And Business Credit
If you run a business, then you know all about surviving on credit. 65% of all business owners use credit for their business purchases. What is unusual is that only about 50% of those use business cards that are in the company’s name. Good business credit comes in handy when applying for a fitness equipment leasing or something similar.
If you are a business owner and are using personal credit accounts for business purposes, you are placing yourself in a precarious position, especially if the company goes out of business or gets sued. You risk losing your personal assets and your good credit rating.
If you want to build business credit in your company’s name, and do so without putting your own credit score on the line, then you need to incorporate your business and obtain a Federal Tax ID number. By this approach, your company is treated as a separate being with its own tax registration through IRS and state agencies, filing its own returns and creating its own credit files that are completely separated from its owners.
More than ever, a successful business will rely on their own good credit scores to obtain the equipment they need.
Your tax ID number not only gets you registered with outfits such as Dun & Bradstreet, but is also good for use on corporate credit applications, since lenders use such info to run a credit check on a given company. Before applying for credit, make sure that all pertinent records and documents, such as corporate records, state filings, and business licenses are up to date. Your phone number should also be listed in the 411 directory so that a supplier or vendor can complete all areas of the verification process.
Now you are ready to apply for credit and the best place to do so is through your suppliers, many of which are willing to extend lines of credit to businesses, allowing them to finance purchases and conserve the company cash reserves. You may be able to obtain products such as office supplies, computers, and marketing material with no payment due for up to 30 or even 60 days.
Paying invoices on time will be the catalyst you need for establishing a solid line of business credit and good credit history. Creditworthiness takes you a long way in the current market. This also allows you to stop relying on personal credit to qualify for the financing that your company needs. The business credit check then becomes a much easier process.
Fitness Equipment Leasing And Business Credit
You also improve your company’s image, protect personal credit, limit your liabilities, and increase your company’s credit capacity, which means you have the option for obtaining as much as 10 – 100 times greater financing than you could as an individual.
LeaseQ is one of the leading providers of fitness equipment leasing in the country, with options available for both small and large businesses. Fitness equipment leasing provides gyms and individuals with the fitness equipment they need to obtain their fitness goals, with much less monetary expenditures than traditional financing. Contact the fitness equipment leasing professionals at LeaseQ today.