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Dear E-Myth Reader,
Your business' credit shouldn't be the same as your personal credit. It is important for your business and
for you personally that your business' credit lines be set up separately.
Create Good Business Credit
Our recent poll asked the question To what degree are your business finances separate from your personal
finances? Here are results from 1428 respondents:
- 33% - Complete separation
- 26% - Finances are mixed
- 21% - Very little mixing of finances
- 17% - Moderate separation, some mixing
- 3% - Don't Know
Almost half of our respondents had at least 'some mixing' of business and personal credit. When you begin
setting up credit for your business, remember these two tips:
- Get a paydex score. Five trade references are necessary for your business to get a paydex score, so deal
with companies that will report your good payment history to the business credit bureaus.
- Don't get business credit from companies selling trade references. You risk having your business labeled
"High Risk" if you do.
Read more in the article Business Credit: It's Not
Personal.
On The Website
E-Myth Client Profiles
If you’ve ever wondered what our Mastery Impact!® coaching program is all about, get the scoop straight from one of our clients in our new client profile Remodeling a Remodeling Business featuring Greg Rittler of Kanon Group, a remodeling and construction company in Maryland.
Yours Truly,
The E-Myth Team
Photo from Flickr
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