It really puts you in a predicament with only 2 ways out.  One, you can just continue to keep your business afloat, doing the minimum in areas of advertising and staffing.  Maybe you have to work 6-7 days a week because you cut an employee, maybe you don’t run that ad in the paper because you can’t really afford it.  

Option 2, which is the option smart companies are choosing, is to take advantage of the situation that EVERY business is in, and use it to your advantage.  Because you know that everyone is hurting why not do something different then the competition.  Use your business credit lines and loans from the bank to work on marketing to new customers.  Make the customers you have remember why they chose you in the first place by treating them like they are VIP’s because they really are.  A little goes a long way, especially when everyone else has stopped spending, your few dollar investment in a customer loyalty program, can go even further NOW.  

So how do you get a large credit line or a loan from the bank … with the help of your business credit.  Using guides like the Insiders Guide To Business Credit can help any business hone their business credit file so that they can get a bank loan or large credit card, without the need of using the owners credit file for approval.  Imagine using that business you have built as the leverage in every financial transaction you make.  It can happen if you start today.  

Visit http://InsidersGuideToBusinessCredit.com to find out more and to get a free copy of their small business credit guide.

I know from personal experience that when you start a business it can be difficult to keep cash on hand, as startup expenses can be overwhelming, but now even businesses that have been around for over 3 years are starting to worry about cash on hand to pay for tax liabilities, thanks to the slowdown in the economy.

So what are companies doing to survive this financial crisis? Smart businesses are using their business credit. As a business owner it is vital to have access to this credit in the form of credit cards, bank loans, or even a bank line of credit. I know it can be intimidating to think about approaching a bank for a line of credit or even a loan, but once you have the proper credit in place for your business they will do most of the work for you.

Thousands of businesses get started on the path to obtain business credit each day, and they don’t have to worry where the money if going to come from, will this be you?

While many factors contribute to this problem, the housing collapse is tightening credit. Banks are being more cautious about who they award credit to, and dropping many credit programs that previously offered more liberal approval and terms to small businesses. In particular, business lines of credit are disappearing quickly, even for small businesses with good credit and the ability to repay a line of credit.

Many businesses are turning to other lenders and credit sources to finance their businesses. One of these credit vehicles is trade credit—opening a line of credit or a credit card with a vendor, whether it be an office supply company or a computer manufacturer. This credit is based on your business credit profile, so it’s important to take the time to create a business credit profile. Using trade credit can help you build this profile so you can get more credit, of all types.

Merchant cash advances are another financing option for businesses with solid credit card sales. While the costs can be high, these advances allow the merchant to take out a loan and repay it through credit card receipts. When a customer buys with a credit card, the lender is paid a portion of that sale, so you pay off the loan as you go.

Equipment and software leasing may be another option for financing our businesses. By leasing big-ticket items rather than paying up front, you can keep your cash free for other business functions, while getting the equipment you need.

You might also want to consider accounts receivable (A/R) factoring, which allows you to sell your receivables, the money owed to you by other businesses. When the accounts are paid to you, the lender gets paid. Merchant cash advances are in fact a type of A/R factoring, but are limited to credit card receivables.

There are several ways that you can get what you need to run your business without taking out a bank loan. Granted, not all of these methods give you cash in hand (trade credit and leasing, for example), but if you can avoid paying cash for what you need, you can often free up cash for other purposes.

When you take advantage of other lending options to get the operating capital you need for your company, you also build your credit profile and increase the likelihood of getting a bank loan for your business. It’s really a cycle of borrowing, proving you have the ability to repay, and being able to borrow more, on better terms, from other lenders, in the future. Like anything else, you will find that the more credit you use, the more credit you will get.

When your business needs capital or equipment, consider trade credit, leasing and receivable financing to meet your needs if you are unable to get traditional loans.

The failure of major banks, the fire sale of WaMu, and now Wachovia is looking for someone to purchase them. The times are financially scary, and it will only put a further strain on your personal finances if you have to pay for your business with your families credit cards.

The time to take action is now, you need to separate your personal credit from your business credit. Imagine if you needed $10,000 to keep your business running during this crisis, but all you had was your personal credit line to support it. You can take one step in the right direction and get separate business credit for your company.

Once you are creating your business credit with my help you will wonder what took you so long to start this in the first place.