Today’s guest post is from Sam Wheeler, SVP of Business Development for Kabbage, Inc. 

Online merchants inherently wear many hats each and every day. From having to manage inventory and track orders to growing new sales channels, there’s a lot to do!

Monsoon’s e-commerce solution is definitely helping a growing number of these businesses achieve new heights of success by streamlining these very important tasks. Yet, many online business owners who feel confident handling the varied challenges of day-to-day operations get stumped when it comes to establishing business credit.

Since the start of the recession in 2008, the media has drawn great attention to the diminishing number of banks offering loans to small businesses. This has deterred many business owners from even attempting to obtain funds to grow. However, establishing credit remains important, particularly if you have plans to ramp up your business. Here are just a few of the reasons why.

Growth Potential
What will you do if you receive a larger than expected order? Will you have the funds necessary to buy the inventory you need or pay for the help you require to fulfill it? Having credit to get you through such a situation could literally make or break your business. Having credit on hand can give you peace of mind that you will have what it takes when you need it.

Protection against a Slowdown
Just as you need to be prepared for a sudden sales boost, you also need to be ready for when there’s a sales lull. Business credit can be used to keep you afloat through a slow period so that you’re still there when the economic picture improves.

Staying Competitive
The old adage that it takes money to make money still holds true. Having funds to use for taking advantage of a supplier’s sale or to be more aggressive with marketing initiatives can sometimes make all the difference to a business. By having the credit you need for promising business opportunities that present themselves, you can maximize your potential for success.

Saving Money
Vendors like to work with businesses that pay cash. In fact, many will offer discounts for doing so. If you are sourcing raw materials or even reselling goods, you’ll have more leverage with your vendors if you have cash on hand. This translates into savings for you and more cash in your pocket!

Providing a Safeguard in Case of a Business Failure
You can’t afford to risk your own personal credit. But, if you’re using personal credit cards to fund your business or are drawing from home equity or personal loans to do so, your credit can be damaged if your business fails. It’s an unfortunate reality that most businesses fail. By using business credit when you need funds, you at least won’t have to worry about damaging your own personal credit.

Like with personal credit, you need to be proactive about obtaining and protecting your business credit. Credit can be an important component of your business’s future success, so it simply makes sense to find a partner for obtaining funds that you can count on.


Sam Wheeler is the SVP of Business Development for Kabbage, Inc. Kabbage is pioneering the first financial services data, technology, and marketing platform for the millions of small and medium businesses that make a living selling online. To learn more about how Kabbage can help your business grow, go to