Recommend Article Article Comments Print Article Share this article on Facebook Share this article on Twitter Share this article on Google+ Share this article on Linkedin Share this article on StumbleUpon Share this article on Delicious Share this article on Digg Share this article on Reddit Share this article on Pinterest Expert Author Chris Wise
Every successful entrepreneur will tell you that at some point, or at many points, in their business, they needed to borrow money. This is done as part of the start-up of their venture or to help it grow to the next level of revenue generating activities. It is an inescapable fact unless you have rich family members that are only too happy to give their own hard-earned money away, or you win the lottery. Neither of those is a good bet. Learning how to establish a business line of credit is. Your wealth creation can be fostered through the methods of becoming a Master Borrower.
Even in our current challenging economic climate, banks and other lenders still need to make money, and one of the primary ways they do this is through applying unsecured small business loan practices. Banks make money by leveraging their deposits. The money they have sitting in their vaults is opportunity wasted if they don’t use it. They need to make profits off of these financial assets, and the way they do this is through loans, which include issuing lines of credit for viable businesses. If you have a solid business plan, know which banks to approach, what to say, and how to properly present yourself, you can get access to this capital. All banks have funds available for unsecured business credit lines.
Many people have a natural aversion to debt, but if you establish business credit smartly and for the right reasons, it can be a very powerful tool. In fact, if you want to achieve a high level of wealth and personal financial freedom, it is essential. It is a way of leveraging other people’s funds for your own gains. The gains you can make can far outpace the interest expense of the debt incurred. Smart, successful entrepreneurs know how to use loaned capital to set their business revenues soaring.
Let’s take a look at the characteristics of a Master Borrower:
Bills and liabilities are always paid back on time
They look like a strong investment to lenders because they have an optimal structure of personal and business credit
They know how effectively leverage borrowed funds for maximum gain
They are adept a managing their cash flow and schedule of loan payments
They understand the best business structure for their particular venture, which makes them bankable
The benefits of becoming a Master Borrower, means that you will be able to access higher and higher levels of capital through unsecured business credit, which you can then use to your business’ best advantage. That might mean you can up your production levels, purchase new equipment to make your processes more efficient, expand into new locations or profitable new niches, and achieve increasing economies of scale to drive down your production costs. Whatever your business, you can establish corporate credit to improve your bottom line, driving up your revenues.
The choice of financing option will depend on a number of factors, such as your previous credit history, both personal and business-related, the inherent risk in your particular market, the current economic climate, and your business plan. Discuss the various options with your lender or credit broker, to understand what is available to you, and what the best fit will be for your particular business.
By becoming a Master Borrower, you can learn how to expand your business credit lines so that your know-how and expertise are given room to soar. Business credit, when used wisely, is one of the most effective tools for growing or expanding your business. It can strengthen your bottom line and be used to create financial freedom for you.