As a sole proprietor, it’s simple to receive your own personal and company expenses muddled up. Although your company is probably legally separate from your own personal assets, a bank that considers giving you a business loan will probably request individual collateral if your company has little real price. In the end, if you don’t clearly distinct company and individual expenses (using separate banking accounts and credit cards for each), you’re discover that it’s difficult or impossible to receive a business loan should you ever need one.
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