There are no guarantees when it comes to applying for a business loan. In these turbulent financial times, banks are being extra cautious. So even if you have extraordinary credit, you may still get rejected.

A common theme on the news is the economic turmoil caused by bad business decisions made by bank executives. The result is that many people who were counting on retiring are now left without their pensions and in some cases without a home. As a consolation though, many of the bank executives have sincerely apologized, but that may never be enough.

Irresponsible lending and irresponsible borrowing go hand in hand. Banks often lent money they did not have to people who on paper had clean records but in reality could not pay the loans back. This makes for the perfect storm.

As tempting as it may be, large loans come with a large responsibility to pay it back eventually. Not accounting for this may land you in some serious trouble with your credit, and you may not be able to borrow again.

Borrow responsibly and only borrow as much as you will need. Speculating once a common practice for many businesses is now considered to be a faux pas. Always watch your spending habits and ask yourself if you really need something.

Borrow sensibly and you can survive economic turmoil and look forward to better days ahead. This may seem like a boring concept but it is key to your success and your future.

You need to get out and get real business credit and stop using your personal credit cards as leverage. I can be the first to tell you that there is a lot of business credit available even in this awful economy. If you start leveraging your personal assets for your business though you could end up broke and homeless. Not to mention stressed out and separated from your family.

Build your Business Credit separate from your personal credit. You can come and visit us to see why this is important.

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Filed under: DEBT

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