How Does Payment for Dell’s Debts Come About?

Dell’s debts must be massive. But that’s to be expected, as it’s likely to be the same for the largest American private companies.

So, some of the largest private companies in the United States include:

Dell, where Michael Dell is the CEO. There’s Mars, where Paul Michaels is the CEO. Then there’s Price Waterhouse Coopers. That’s there Greg Brenneman is the CEO.

Then there’s Publix, where William Crenshaw is the CEO. And there’s also Pilot Flying J. That’s where John Compton is the CEO.

What Do They All Have in Common?

So, does it make sense that these CEOs personally guarantee their business debts?

Dell does about $57 billion in business annually. And it has over 83 reported accounts on their business reports with Experian.

Dell’s Debts Are Probably Pretty High

With $57 billion in revenue, Dell has an appetite for VERY high credit limits, even exceeding $100 million.

So do you think when Dell needs this type of money and goes to get credit, that Michael Dell personally guarantees the financing and credit that Dell gets?

Yet the highest amount he has (probably) personally financed is his home. And it’s worth a cool $73.3 million.

So his credit isn’t even strong enough to secure the type of capital the business needs to operate and grow. This is because they often need and use $100 million and more.

Dell’s Debts Are Like Google’s, and Apple’s, and …

This is actually typical of all large businesses, and many small businesses. Because the company quickly outgrows the credit of the individual owner. And at some point the business itself has to stand on its own.

This is why they build business credit! Per the SBA, credit limits on business accounts are 10 to 100 times that of consumer credit.

This is because a business has a much bigger need for credit than an individual does.

Loan amounts, and credit limits, are always higher on business accounts than with consumer accounts because businesses make and spend a lot more money than a consumer will.

Dell’s Debts Are Kind of Like YOUR Business’s Debts

Join the club! Every highly successful business in the United States has business credit; it’s how they got as big as they are.