What is Business Credit?
Business credit refers to a company’s ability to borrow money and obtain goods and services based on its creditworthiness rather than the owner’s personal credit. It involves a separate credit profile that reflects the business's financial behavior. Establishing business credit helps build a reputation with lenders and suppliers, facilitating better financial terms. It is crucial for accessing larger credit lines and favorable loan conditions. Business credit also plays a role in protecting the owner’s personal assets and finances from business-related risks.