Business Credit
When trying to access capital or apply for a line of credit, or in this websites case, buy a business, it does you good to make sure that you have a solid business credit asset. When I say business credit asset I mean a good business credit score. A business credit score is just like your personal credit score. If you pay your business bills on time then you will have a good business credit score. If you fail to pay your bills on time then you will have a poor business credit score.
A business credit score is very much like your personal credit score. Make your business payments on time and you will have a good business credit score.
Banks and lending providers today want to make sure they are not taking on any risk whatsoever. You can even have a perfect personal credit score and the bank still wont give you a loan. Establishing business credit is the only thing that is going to express to the banks that you have put the time in to be a look risk small business borrower.
Creating a good business credit asset for your business will help you:
- Separate your personal credit from your business credit protecting your personal assets
- Take advantage of all business opportunities such as government contracting and affiliate opportunities
- Express to potential future buyers and investors in your business that you have taken the time to build a strong corporate foundation
- Be approved for a business loan or line of credit
In order to build a strong business credit asset you need to do business with organizations and creditors that are going to report your timely payments to the three main business credit agencies. The three main business credit agencies are Dun & Bradstreet, Experian, and Equifax. Each one of these agencies reports your credit a bit differently which is the reason why it is important to have a good business credit score with all three.
If you would like to learn a bit more about how establishing business credit can help you get a business loan, please give us a call.
800-737-3039
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