Is Your Financial Situation Situated?

Starting a business is hard enough to do. Having credit and banking issues before you get started can make it even more difficult.

Thus, the question: Is your financial situation situated?

For instance, many decide to start a business but may have bad personal credit. It would be wise and extremely helpful to clean this up beforehand. Having bad personal credit makes it nearly impossible to establish business credit, and this can be a downfall for your company.

Pull your credit report, and come up with a plan to repair all of your financial woes. If you owe money to a creditor and they are pursuing you via a collection agency, pay it off - even if you have to do so at at a rate of just $50 a month. Never give up on improving your credit score. It's well worth it, even if it takes 10 years to do so.

Also, if you have banking history issues with agencies such as Chex Systems - you'll want to clear that up as well. Establishing a business bank account will be troublesome if you are identified as a person who has previously wrote bad checks or abandoned bank accounts with negative balances.

Whatever has happened in your financial lifetime, you will want to make it look squeaky clean. The world of finances can be very forgiving if you take consistent actions to fix your errors.

You don't have to be wealthy to start and build a business, but you do need a reputation that says you're responsible and trustworthy.