Why it is Important to Establish Business Credit Early by Aminah Knowles

Building business credit is probably the most important thing to prioritize for business owners. Many startups depend on the use of their own personal assets to secure their funding. This is because they want to increase their creditworthiness. But today, building business credit is preferred by most business owners.
The National Small Business Association has surveyed and as much as 27% of businesses claimed that they weren’t able to receive the funding that they needed. For many businesses, the impact of the lack of funding was stopping them from growing their business.
Unfortunately, one cannot build a successful business and business credit without having a good credit history. Creditors will be reviewing your credit scores, and if they have nothing to review, they won’t know the risk they are putting their-selves into, worse than that is you will definitely not be approved.
You might have heard somewhere that building business credit does not matter. If that’s true, then why are lots of business credit reports being pulled daily? Business Credit reports are pulled for all kinds of reasons from gaining knowledge that manufacturers pay their bills, suppliers pull business credit on them. And to know that suppliers are dependable and reliable, manufacturers also pull business credit on them.
Building business credit is something you should look forward to. Why? Here are some reasonable statements:
It protects personal credit. With the use of business credit, you can leave your personal credit out of the equation. It divides your business decisions from your personal credit history.
It improves credit capacity. “Businesses have 10 to 100 times greater credit capacity compared to personal credit”, according to the SBA. This is a great chance for your business to qualify for financing factors which are strictly related to the business.  
It helps to grow your business. Some companies, investors, and banks mostly rely on business creditworthiness when determining insurance premiums, setting loan terms and many more, considering you as a feasible partner.


Learn more about Amina Knowles:
www.pawfundingsolutions.com  Twitter:@pawfundingsoln

Comments

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