Can't I just use my personal credit?

It's true that many small business owners fail to separate their business expenses from their personal expenses. The credit card used to take the family out to dinner also gets used to gas up a company vehicle or to pay for supplies used by the business. Half of all small businesses use some form of personal credit to finance their businesses.

However, the weakness of relying solely on personal credit is clear. If your business ever becomes at risk, your personal credit score becomes at risk as well.

Additionally, many creditors today are moving away from relying on personal credit alone when judging the financial health of the owner's small business. Personal credit is considered in the industry not ideal in predicting business behavior. Furthermore, smart creditors are taking advantage of new blended commercial scoring tools that integrate both personal and business credit attributes to assess and predict small business risk.