Establishing Business Credit with GMAC

While there are many reasons to establish business credit many business owners overlook the advantages of financing their autos with corporate credit. The key is keeping all your business related expenses and obligations separate from your personal credit files.

This includes minimizing the use of personal credit checks and personal guarantees to get business credit.

Ask yourself the following questions:

Are my business debts reporting to my personal credit files?

Does the auto loan or lease for my business report to my personal credit files?

The good news is there are companies like GMAC that understand the importance of keeping personal obligations separate from your business debts. More importantly one program it offers reports your payments to your business credit report and not your personal credit files.

Third Party Guaranty by GMAC

This program was specifically designed for business owners to keep their automotive financing separate from personal credit. It even allows you to keep your personal name off of the vehicle contract and title. Now that's what I'm talking about!

Now you may have to provide the additional financial backing that GMAC requires like a personal guaranty if your established business credit file cannot support the loan or lease.

Here's a quick breakdown of the benefits:

-Build credit in your business name only.

-Your vehicle purchase or lease will not be reported on your personal credit reports, unless your business defaults.

-Added protection from liability, since your name remains off of the vehicle's title and contract.

-Personal privacy since you are only personally contacted in the event of default

Now to take it a step further suppose your business needs to purchase multiple vehicles. GMAC also has a program called the Commercial Line of Credit.

The best part of this program is your business can provide the financial data it needs to establish a business line of credit with GMAC one time rather than provide the same information for each vehicle purchase. This is extremely convenient especially if you have to purchase or lease multiple vehicles at different times and at different dealerships.

Think about the positive impact this will have on your personal debt-to-credit-limit ratios if suddenly your future auto loans or leases stop reporting on your personal credit reports and now report to the business credit bureaus.

There are also several other major automotive companies like GMAC that offer vehicle financing programs designed to establish business credit while protecting your personal credit files.

Take advantage of all the benefits that corporate credit provides the same way major corporations have been doing for years.

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