The Unjustified Fear of Entrepreneurs

Credit. A term that can induce anxiety in many business owners. Why? Because it's something many don't fully understand or cannot completely control. But, should we fear credit? The short answer is no. In fact, credit can be a powerful ally in the growth and stability of a business, if used correctly.

The Fear of Credit

According to a study conducted by the Federal Reserve of the United States, 33% of small businesses avoid applying for credit due to the fear of being rejected. But, what lies behind this fear? Often, it boils down to a simple lack of understanding of how credit works and how it can benefit their business.

Business owners often see credit as a debt or an expense, when in reality, it's an investment in the future of their business. Through credit, you can finance expansion, acquire equipment or working capital, and even improve your cash flow.

The Value of Credit

Commercial credit is not just a form of financing; it's also a way to build a credit history for your business. According to the Small Business Administration of the United States, 46% of small businesses used some form of financing in 2019.

This credit history can open the door to better loan conditions, lower interest rates, and more financing options in the future. Therefore, when you pay to create a credit history for your business, you're not incurring an expense, you're making a long-term investment.

The Importance of a Financial Expert

As in many other areas of life, fear of the unknown can be overcome with knowledge and guidance. This is where a financial expert comes into play.

A financial advisor can provide you with the education and advice you need to understand and leverage commercial credit. They can help you select the best credit option for your business, understand the terms of your credit contract, and manage your payments effectively.

Moreover, a financial advisor can help you plan and prepare for the future. According to the National Association of Financial Advisors, businesses that work with an advisor are 30% more likely to achieve their financial goals.

There's no reason to fear credit. With the proper education and the advice of an expert, credit can become a powerful ally for your business. It's not an expense, but a short and long-term investment that can contribute to the growth and stability of your business.

Don't let the fear of the unknown paralyze you. Take the first step towards a stronger and more secure financial future for your business. Explore the credit options that are available to you and don't hesitate to seek the help of an expert. Your business will thank you.