The easiest answer to this question is “protection”. Most people incorporate to create protection and separation between themselves and their companies. That way if your business fails you don’t risk your personal assets. If you use your retirement or HELOC to fund your business, you put your family’s future at risk and negate the entire reason for incorporating. Business credit is unsecured, freeing up your assets if the unthinkable were to occur.
Another reason to use business credit is because that is what you qualify for. Far more people qualify for our business credit lines than loans, mostly because of the strict underwriting and collateral requirements for a loan (collateral is when they guarantee the loan with an asset such as your home).
Additionally, with business credit there are no liens or UCC filings placed on yourself or your business, which means we can go to multiple lenders for more credit, increasing the total amount of funding you can build.
Get more information now at http://budurl.com/BusinessFinance