It will come as no surprise that the reason small businesses fail in their primary years is under capitalization. In other words, they have insufficient credit to get the funding so critical to running and building their business.
The reason for this? No one has taught them how to establish business credit and then how to leverage that credit to their benefit. Some companies have the adequate funds to get started, but later down the road realize it is not enough to stay growing and thriving.
Many business owners are not aware that you absolutely must establish credit for your business that is entirely separate from your personal lines of credit.
“The longer you delay establishing business credit, the longer you delay taking advantage of business loans.”
82% of companies get denied for business funding on their own. Work with a company like Sprout FInancial. With Sprout, that percentage rate drops down to below 1%.