How Personal and Business Credit Can Make or Break Your Business

“The Nav American Dream Gap Survey, 2015, revealed of small business owners surveyed, 45 percent did not know they have a business credit score, 72 percent did not know where to find information on their business credit score and 82 percent didn’t know how to interpret their score,” reports the U.S. Small Business Administration.

Credit score

Despite the important role business and personal credit play in owning a business, many business owners aren’t aware of the credit factors that influence their businesses. These factors can make or break the future of a business: their ability to grow, receive funding, acquire partners, etc.…

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Four Steps to a Great Business Credit

The path to great business credit for your company can be a complicated one without the right direction. There are a lot of facts and figures to consider, and vendors change their policies regularly. Below is a simple, four-step guide to how you go about gaining a business credit.

Business credit financing

1. Make it legal

The first step on your business credit journey is to make sure that you have all of the legal requirements in place. Your company must be a separate entity in the eyes of the law, with a separate address, phone number, tax ID, Employer Identification Number and so on.…

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Smart Ways to Build Credit and Grow Your Business

One huge issue for a startup entrepreneur is obtaining credit to finance business growth. All companies need capital to market the business, make a product or provide a service. Without proper financing, a new business may quickly fail. Here are some tips to build business credit and protect the credit rating.

Business credit rating

Business credit vs. personal credit

This article explains that both business and personal credit scores are based primarily on the same two issues. One issue is the number of credit inquiries and applications to obtain credit. The other is the number of loans and credit cards outstanding.

Avoid the mistake of using personal credit to finance business operations.…

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Evaluating the Potential of Extending Credit to Your Customer

There has been an ongoing debate among business owners as to whether or not extending credit to their customers is an ideal practice to consider. The reality is that you’re providing your products or services upfront, with the hopes that the customer will repay you at a later date. Of course, there are various risks involved that should be considered, but with the proper management of your cash flow and credit departments, extending credit to deserving and qualified customers can prove to be less of a risk and more of a competitive edge.

Agreeing upon credit extensions

Reality Check: Times Are Rough

Though the global economy is recuperating at a pretty steady pace, it doesn’t negate the fact that many people are still facing financial difficulties.…

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