Corporate credit comes in many forms; corporate credit cards, vendor accounts, loans and lines of credit are the most popular. Some small business can get by with a corporate credit card and vendor credit, but sometimes your business just needs cash.
Here is a perfect example of how corporate credit in the form of cash helped me to grow my business. The town that I live in holds real estate auctions once a year. They sell both residential and commercial buildings on which the real estate taxes have not been paid. The buildings sell for the back taxes, plus a little more depending on who is bidding. The property owners can get the buildings back if they can pay the back taxes.
I knew of a great commercial building in town with no liens but the back taxes of $3,000. I knew the owners, there was no way they were going to be able to redeem the property. If I could buy it, I would have a $100,000 commercial building three times the size of my current building for $3,000.
I used business credit in the form of a bank line of credit to get cash and go bidding. The property went for $6,000 and I knew I got the deal of a lifetime. No one else had readily available corporate credit; they were using their personal savings only. Years ago I had paid a company to help me establish corporate credit. My business coach insisted I needed cash corporate credit and now I see why.
If I had not previously arranged corporate credit beforehand, I would have lost the chance to expand my business. These auctions only happen once a year and very few commercial properties are available. Without corporate credit, I could never have taken advantage of this once in a lifetime opportunity to expand my business for so little money.
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i used corporate credit concepts in 2007, good company.
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