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Having corporate credit doesn't give you a free ticket to use it. The wise business owner understands this from the very start. If you aren't good at handling your own finances, then you aren't going to be much better with business credit. You need to keep it all in perspective though because if you mess up your corporate credit it will have a severe impact on you for the life of your business.

Should you end up abusing the corporate credit that has been extended to you, it can be almost impossible to get it down the road. What you can get your hands on though may be at a very high price. Those higher interest rates are going to deeply cut into your profits and that will affect the overall success of your business. Always strive to keep expenses low so that more of what you do earn can be deemed as profits.

Corporate credit is deemed by many as a right when you have a business but that isn't the case. You have to prove to lenders that you are going to be able to make the payments. You will have low limits and higher interest to begin with. As you do well repaying that credit though you will see a shift in these areas. Your credit limits will increase and at the same time the rate of interest will decrease.

The key is to establish the corporate credit that you can for now. Then place it aside as a type of safety net. Never get into the habit of depending upon your corporate credit to get you by. If you do so, you will place your business in jeopardy of failing from the very early stages. Also, if you have large balances in place it will take you a very long time to pay it all back.

Finding the right lender to extend corporate credit to you is very important. You may not be able to control the rates you have to pay at first, but maybe in the future you will have more control. You need to pay attention to what you need to pay, when it is due, and to always be on time. If you establish yourself as being very responsible with it there are plenty of rewards waiting for you.

You should view having corporate credit in place as a life line for the future of your business. Reach out for it when you really need it to keep you going. Make good decisions though and think logically instead of emotionally about what you will buy with it. Sometimes you have to see the big picture though to realize why you are going to take the steps you are now.

Corporate credit can help your business if you are going about it in the right way. It can ruin your business though if you let it control you. Carefully consider what you want to accomplish. Only then can you develop a strategy to get you there. Break your big goal into smaller pieces so you can celebrate successes along the way.

Don't be afraid to take some calculated risks though either. You will find that many successful businesses have done this and it was in their best interest. No one can say for sure if your business will be around in the future, but you can do your very best to try to make it happen. Taking responsibility for how you use corporate credit is one way to make sure you are going to have a fighting chance.

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Robert Bain - veteran business owner who has built and sold dozens of enterprises. He now writes about the second set of small business credit financing rules the banks don't want small business credit owners to discover.

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