Now that your unsecured lines are in place, they are ready to be utilized.
These are business lines and must be kept separate from personal credit. In other words, these lines should not be used for mortgage loan payments, personal debt consolidation, student loans, or anything of that nature.

If you do use the credit lines for personal finances, it could jeopardize the personal protection that is offered by having corporate status.

The object of our unsecured lines of credit program is to increase sales, not increase long-term debt, and to improve the overall corporate credit score.

The lines of credit are offered through major banks and lending institutions and consist of Visa, MasterCard, American Express, Chase and Bank of America credit cards. They are revolving credit just like your personal credit cards. You only pay on the amount you use.

Use these credit cards as you would use cash. As each line has a different interest rate depending on the lender, there is a little management needed to make sure you are getting the best use of your money.

You should avoid using the credit cards to the degree where you can not afford the minimum monthly payment. Making at least the minimum payment every month in a timely manner is critical to improving your corporate credit score.

Having corporate credit cards can be useful for the small business in numerous ways. One of the biggest benefits is having access to financing when you need it. With the knowledge that you have access to capital you can look for ways to increase the bottom line.

Increasing the bottom line can be achieved by taking advantage of buying in bulk and getting a better price per unit, increasing the advertising budget, or being able to handle larger orders.

If you had some business credit card debt before acquiring the lines, maybe some debt refinancing might be beneficial.

Most small business owners have made personal loans to the company to get it off the ground. With the unsecured business lines of credit, you are in a position to re-pay the loan to yourself. This places the debt where it belongs, in the corporation, and can improve your personal credit score.

The bottom line to managing your corporate credit is use the lines to your advantage, don’t get in over you head, and make at least the minimum payment on time every month.