UNDERSTANDING HOW BUSINESS CREDIT OPERATES

Most people understand how personal credit works and have a general idea of what their credit score means, but when it comes to launching a small business, entrepreneurs often have limited understanding about how business credit operates. If the business is owned by more than one person, whose credit determines what kind of loans the business will get? What if it’s a sole proprietorship? Does business credit affect personal credit and if so, how? These are common questions that many entrepreneurs have when they’re trying to figure out how to build their business. Ideally the small-business owner would understand how it all works before starting up, but for many, the questions don’t arise until they’re already going down the business-building path. One benefit of understanding the basics of business credit before implementing your business plan is that you can have more realistic expectations of what kind of credit you will receive. It’s also smart to get personal credit in order before launching your business.

Business credit is typically separate from personal credit; there are separate credit cards, checking accounts, and savings accounts. But that doesn’t mean you can neglect or underestimate the importance of your personal credit history when it comes to your business. Personal credit history plays a role in determining what kind of credit lenders will provide, whether you’re a sole proprietor or going into business with partners. In case of the latter, lenders will often want to know the financial history of all co-owners to determine the risk level of lending the business money.

How financial history is calculated depends on how the business is organized. If you structure your business as a sole proprietorship or partnership, your personal credit information is tied in more closely with business credit. Often your personal assets can be used as collateral in case of unpaid business debt. If you structure yourself as an LLC or corporation, you have the benefit of liability protection and you can typically obtain credit under the business’s name, which means lenders don’t necessarily have to check your personal credit history. However, it’s not unusual for lenders to check personal histories of all the owners in the business to provide for initial start-up funds. It’s also wise to keep personal credit intact in case you need to rely on it later to obtain funds to grow or improve your business.

Once your business is registered with business credit bureaus, your business profile will take on its own history much like your personal credit. As with any debt, entrepreneurs should be sure to pay on time and operate their business within reasonable financial means.

WOOD DEFENDER CLASSES FOR 2023

Training classes are held monthly. After completion, attendees are ready to hit the ground running and stain their first fence. The classes cover all aspects, including:

• Sales and marketing techniques of the fence-staining service

• Equipment and product demonstration

• Overview of equipment options to fit every budget

• Specific product knowledge of Wood Defender products

• Proper clean up and job site management techniques

Class dates are:

• May 19

• June 23

• July 28

• August 25

• September 22

• October 27

• November 17 www.wooddefender.com

UPCOMING CERTIFICATION TESTING DATES

June 10 - Wadsworth, Ohio

September 15 - Myrtle Beach, South Carolina

September 30 – Wadsworth, Ohio

November 11 – Dallas, Texas

January 24 – 25, 2004 – Nashville, Tennessee

Coming Soon (dates TBD) Seattle, Washington Spokane, Washington Louisiana www.americanfenceassociation.com

AFA MEMPHIS TRI-STATE 37TH ANNUAL GOLF TOURNAMENT

May 19 – 20, 2023

Tunica National Golf Course

Tunica Resorts, Mississippi www.internationalgoatdayschampionshipbbq.wufoo.com.

SALES TRAINING SCHOOL – AFA UNIVERSITY

June 4 – 6

Wadsworth, Ohio www.americanfenceassociation.com

FENCE CONTRACTOR BUSINESS SCHOOL – AFA UNIVERSITY

June 7 – 9, 2023

Wadsworth, Ohio www.americanfenceassociation.com

SPORTING CLAY SHOOT

COLORADO CHAPTER OF THE AFA

June 10, 2023

Wiggins, Colorado

For details, email bernt@cfence.com.

CLFMI 2023 SUMMER MEETING

July 11 – 16, 2023

The Greenbrier Resort White Sulphur Springs, West Virginia www.chainlinkinfo.org.

THE FENCE SHOW EXPO

August 23 – 25, 2023

South Point Casino & Hotel

Las Vegas, Nevada www.fenceshow.com

LANDSCAPE EXPO

September 20 – 21, 2023 Anaheim Convention Center Anaheim, California www.thelandscapeexpo.com

WASA

SAVE THE DATE

September 21 – 22, 2023

The Orleans Hotel & Casino Convention Center

Las Vegas, Nevada www.wasaonline.com

PSP/DECK EXPO 2023

November 10 – 15, 2023

Las Vegas Convention Center www.poolspapatio.com

If you have a fencing industry event you’d like included in an upcoming issue, please email the information to: editor@fencenews.com.

If you have a fencing industry event you’d like included in an upcoming issue, please email the information to: editor@fencenews.com.