What is a credit score? Did you know that personal credit score can also affect your business? A credit score describes a customer's creditworthiness, once you have a higher score, the better you look to potential lenders. A credit score is built on credit history: total debt, payment history, and other factors. Lenders use credit scores to assess the repayment capabilities of a borrower in a timely fashion.
If you’re just starting out, it will take a long way for you to build a business credit. Several small businesses haven’t been able to operate long enough to have a positive and accurate business credit score. And there are a lot of businesses as well that are open for years but still not have much business credit. For instance, if a small business owner has a considerable personal credit history. Oftentimes, lenders will use a personal credit score to evaluate the type of loans that will be offered, together with the terms and interest rate with those loans.
What Do You Need to Qualify for a Loan?
After reviewing your personal credit score and history, lenders will check at a variety of criteria when appraising a business loan request, including your financial statement, existing debt-to-credit ratio and the amount of your loan request. They will evaluate the cash flow of your business and will review the daily balances and transaction details in your business bank account.
How to Build Business Credit
Business credits are built based on business trade, debt and payment history, corporate family background and other information including business partners and guarantors associated with the company.
Having a strong business credit score can help you get the most capital with the best rates and terms to help you expand or develop your business. It can support you to get the cash you need to keep your business up and running in uncertain times too. It is also convenient when applying for trade credit from a trade vendor, which can help your business preserve a good cash flow.
Business credit can also be useful even if your plan is to shoulder all your business expenses by using cash on hand and totally avoiding loans and credit. Because business credit is available by the public, a strong business credit score can boost your business by encouraging potential investors to work for you.
With a poor business credit score, your business is less appealing to potential business partners and suppliers because some loan options will not be available anytime you need it. Investors look for a more financially stable business relationship. Check Your Business Credit Score
Be sure to check your business credit score regularly because your data in your business credit report can sometimes be incorrect. Different from free personal credit reports, you’ll need to pay to check your business credit report. Business credit scores generally range from 0-100 (instead of 300-850 in personal credit scores). Each of these three primary credit bureaus such as Experian, Equifax, and Dun & Bradstreet gathers, evaluates and verifies information differently. Where to apply for business loans
Now that you know your business credit score. Is it less than ideal? Worry no more! At Sals Capital, we consider more than just your credit. We work with new lenders that can easily get you funded now. They can get you funding up to $500,000.
We have a rapid credit repair program as well as easy-to-qualify for lending programs and multiple funding options that will get you the money you need, fast. Such as; term loans, working capital, advance equipment leasing, SBA Loans, and so much more.
Interested to know if you can qualify any of these loans? Better Call Sal!At 332-334-1077