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Spend any time with television or radio these days and you likely will hear the pitch that corporate credit is the answer to it all. World peace, hunger, nuclear proliferation, a veritable free flow of money that gushes into your pocket any time you want it to.

At this point, any thinking human with more than two brain cells to rub together should be a little suspicious. Is there anything in life that works like that? To this, we feel safe in saying \u201cno.\u201d

But there are some potential advantages to corporate credit, especially if your business plan involves short-term rehab projects. We\u2019re doing some research into corporate credit and will get back to you with more in depth information later but, for now, here\u2019s the thumbnail sketch.

The term \u201ccorporate credit\u201d means that you create a legal business entity like an LLC or corporation and then apply for loans or a line of credit not through your personal identity but as that business organization. The upside is you could potentially obtain more money through this approach than you would personally.

The advertisements would have you believe it only takes a few months before $300,000 literally leaps into your hand. The truth is \u2013 probably not. Smaller community banks seem to be more likely to work with newly established corporations but the interest rates will be high. They want to develop a relationship with you but they\u2019re not going to hand you the keys to the vault.

And remember this, default on one of these business loans and it WILL show up on your personal credit report.