While it has proven effective for some, it has left others with unmanageable debt and an inability to eventually secure a business loan. The latter often spells disaster for many small businesses.

That's one of the key points many experts make in advising entrepreneurs on how to build up business credit without wreaking havoc on their personal finances.

"When business owners get into that sort of thing they are on the personal side of things trying to support themselves, a business and a family," said Dave Von Holten, a partner with the Las Vegas firm of Business Credit Services LLC. "It's killing lots and lots of (entrepreneurs)."

Von Holten's partner, David Gass, said it can ultimately force business people to make difficult decisions.

"If you're using personal credit every single time, you are going to end up going out to get a home mortgage and you've maxed out your credit," he said.

Gary Gibson, a senior vice president with Nevada State Bank, agreed that running up personal credit card debt can be a problem for entrepreneurs.

"When we look at (a business loan) application, we look at cash flow and the ability to repay the loan, obviously," he said. "We also look pretty hard at how the personal finances are managed."

Credit card debt, however, is not always a negative, if the loan application includes a plan to pay off that debt.

"You would have to explain why you are doing it and show what you are doing to pay it off," Gibson said. "It is unsecured debt. Credit card companies don't care if you pay it off in eight to 10 years. We prefer you pay it off in three."

Von Holten and Gass focus their business on helping companies establish a credit record that will allow greater access to capital. The company offers yearlong programs -- costing from about $1,000 to $2,000 -- that take businesses through the steps of building credit.

Tapping personal credit, they said, does little to further that process. And many businesses also fail to establish credit by paying for everything in cash, never generating a credit record.

"We see a lot of businesses that have been paying cash for everything and have never gone out and established credit," Gass said, pointing out that there are still ways of operating without any debt while establishing credit.

"They can have no debt and still be building up credit," Von Holten said. "Start paying on 30-day and 90-day terms. People just don't take the time to do it."

John Scott, director of the U.S. Small Business Administration's Nevada District, said time is often an issue cited by business owners struggling to keep up with a rush of chores during the startup process.

"There's some sense of urgency on behalf of entrepreneurs," he said. "Time is money. They use their own credit cards or don't apply for credit because it's more convenient."

Business owners, in the rush to focus on the mechanics of running their companies, also forget some basics of establishing a corporate identity, and ultimately a credit history. Gass said his firm starts with the basics in coaching businesses to better their credit standing. That includes obtaining a business license and establishing a land-line phone and address that's listed in directory assistance.

"It's amazing how many people don't think about those things," he said. "A business license is the law. You have to do it. For people to extend credit, the business has to be real."

Scott agreed.

"People need to go through the formal procedures," he said. "Check with the secretary of state and establish the formal business name. Go through licensing and establish the proper legal structure, all of which gives credibility to the business itself."

Credibility, he said, is ultimately the key to success.

"The thing lenders are looking for is commitment," Scott explained. "If you haven't made that commitment, it could be difficult for those bankers to have confidence in the future of the company."

Kevin Rademacher covers utilities and finance for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at (702) 259-4069 or by e-mail at kevinr@lasvegassun.com.