Starting a crypto business requires a lot of courage, as the market is always fluctuating. But at the same time, it becomes a bold and amazing adventure. In this business model, you will be working on the future of digital assets and money. Most crypto founders face various barriers, and one of them is securing funding from banks. Because banks are somewhat scared of the crypto world. This makes it even harder for crypto startups to secure a credit card. Since having a credit card means that you are slowly creating a financial footprint, getting one becomes more important. Here, you will learn how to make your crypto brand trustworthy enough to get business credit.
Separating Crypto Funds from Personal Life Money
The first step to becoming credible is to make a clear boundary. You must never mix your own money with the company’s cash. Use different accounts even if you are the only founder. Opening a dedicated company bank account will be your first critical move, as it shows that your business is a separate and legal entity. This separation will make your accounting clear for each tax season. It also safeguards your personal assets during any struggling phase. If you have organized financial habits and clean books, investors would love to fund your business. Such a professional setup is the basis of a great crypto business.
The Importance of High-Quality Financial Reporting
To earn trust in the crypto world, your business must be completely transparent. This is why you must track every flat dollar and token carefully. Using modern accounting technology or software will allow you to understand digital wallet and blockchain data. You will have to create monthly reports to show your spending and revenue, which will allow you to understand ‘burn rate’ and how fast the cash goes. Accurate reporting makes it easy to explain to any outsider, and if you want to get business credit, you have to show clear numbers. It proves that you are a disciplined and serious founder. Transparency closes the gap between the traditional banking work and the crypto industry.
How to Get Credit Without any Financial History?
Most new companies don’t have any financial history, which is why it becomes hard for them to even get a small-limit credit card. But the good news is that you can find financial tools designed for growing tech startups. You can now find startup business credit cards with no credit, such cards only look at your bank balance. These cards allow you to pay for team travel, ads, and servers, making it a stable way to build your company’s credit history. It also gives you the power to spend whenever you need. You just have to use these cards wisely to gain more financial respect.
Carefully Manage Crypto Treasury
The heart of your crypto start is the treasury, which typically holds a mix of volatile digital assets and stablecoins. You must learn to manage these funds to pay bills. Use multi-sig (multiple wallets), which is to keep your funds in more than one wallet. Remember the divide and conquer rule? Doing this will allow you to pay less in taxes on such assets. Laws about crypto taxes are changing very fast, and to be highly credible, you have to follow every single regulation. This also includes knowing how to avoid money laundering and understanding KYC (know your customer). For this, you can hire a legal team to review your marketing, services, and products.
