Do Millennials Know About Business Credit?

As a millennial, I know that we are often painted as a disruptive and increasingly powerful group of consumers – who have been accused of “killing” numerous industries, from department stores to diamonds to paper napkins. Perhaps people are perplexed by our non-traditional approach to how we earn, spend, and invest our money. Growing up in a highly competitive and technologically advanced world drives us to develop independence and creativity. We crave collaboration, excitement, and authenticity. So, it is no wonder that, according to a survey by Bentley University, 67% of millennials say they are interested in starting their own business.

Business Credit Advice for Young Entrepreneurs

Forty-seven percent of millennials surveyed cited a lack of funding and personal debt as reasons they don’t pursue entrepreneurship. Two-thirds struggle with at least one source of long-term debt, such as student loans, home mortgages, or car payments. Separating their business and personal credit could make it easier for young entrepreneurs to obtain loans, venture capital, or grants to fund that start-up they’ve always dreamed of without affecting their personal credit (and vice versa).

Advantages of Establishing Business Credit

Establishing strong business credit early on can be a way to show credibility and help offset the limitations of one’s personal credit. Lenders and potential business partners can rely on the business’s credit file to help make decisions on how to engage with that business, and the owner’s personal credit may not have as great an effect on financing or contracting opportunities for the company.

Business Credit vs. Personal Credit
Understanding the difference is just the beginning.


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