The Importance of Business Credit Reports

The Importance of Credit Reports in Business

What is the importance of business credit reports? Entrepreneurship is one of the best jobs in the world. Each of us wants to run a small business that will eventually grow and become very profitable. The importance of credit Reports in Business is very important, however, this dream can only come true if the business makes wise decisions and implements good sound practices that have a positive impact on the day-to-day running of the business.

In contrast, while many financial institutions rely entirely on credit decisions based on one’s personal FICO score, your business’s credit report is also considered today. Therefore, it is time for business owners to improve and refine their business credit scores to achieve the most favorable rates and conditions for financing.

If you ever dream of a profitable and growing business, one important thing is to get a reliable credit report. One of the drawbacks of getting a stable credit report for your business is this.

Why Do You Need Business Credit?

Business Credit
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Business Credit

One of the easiest ways to get out of a financial crisis is to apply for a loan from a bank or look for alternative funding options. Unfortunately, not every business that applies for a loan is approved. Why? One of the many factors that affect credit approval is the lack of information or information in a company’s credit report.

Therefore, to get your business loan approved for an immediate loan, you have to make sure that your business credit is well established and positive.

Related: How To Start Building Business Credit

 Lease of office space

The person who runs the business will need extra room for expansion purposes. Also, you want to move the business to a completely new location. You will rent office space in both cases. However, a bad credit score for your business can ruin your chances.

This is because many landlords have adopted the use of business credit reports. They first check your business’s credit score before permitting you. If you have a good credit rating for your business, you will not have a hard time leasing office space. A good credit score will save you time.

Related: All You Need To Know About Rental Credit Checks For Landlords and Tenants

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Attracting other business investors

When a business starts, the future of that business is never known. If a business is fortunate enough, other businesses are more likely to come and want to partner with you. This cannot happen even when the business has a low credit score.

On the other hand, due to the financial struggle in the business, a businessman wants to sell it to other investors. A business with a good credit report will be a positive factor that potential buyers will consider. The second scenario is when you want to grow your business. An investor will only verify your trade and find out if your business has a good credit report.

If you want to attract investors to your business make sure you have the proper paperwork that you formed your business, you can get a free LLC here, and that your financials are on track, you a great to keep track of all your billing, payments, time tracking, accounting, mileage tracking and projects is with FreshBooks.

Related: What Are The Best Business Checking Accounts

Business Funding

Do you need business credit to be able to get funding?

The short answer is no. Some lenders will use your personal credit to get you approved for funding. However, it is best to separate your business credit and personal credit. If something goes wrong in your business and a client doesn’t pay you and it impacts your credit score that will also hurt your personal score. The best route is to separate, but if you need funding for your business immediately you can use your personal credit to get it while you build your business credit.

Fund & Grow is a company that offers $50,000 to $250,000 business lines of credit. They fund real estate investors, eCommerce store owners, Local Businesses, Doctors, Lawyers, Airbnb Landlords, Gym Owners, Truck Drivers and more. They offer 2 different membership programs.

12 Month Membership

This membership is great for new businesses who might not have established business credit but are looking for funding. You can receive up to $250,000 at low interest that does not show up on your personal credit. You also receive the benefits of Dun & Bradstreet PAYDEX Corporate Credit building program and create an additional $100,000 of credit. If you don’t acquire any credit you are able to cancel your membership and get a full refund minus the 4% processing fee.

  • $3997
  • $50,000 – $250,000 of cash credit
  • $50,000 – $100,000 of Corporate Credit Accounts
  • No minimum FICO score required
  • 60 day month back quarantee

Performance Based

  • $1 confirmation charge to sign up (No additional Fees)
  • Pay 9% After funding is established
  • 730 FICO score with $10,000 – $20,000 combined Bank Credit Card Limits (they do make exceptions on a cas-by-case basis)
  • Credit counselors review your profile and let you know your prequalification amount. If you meet the underwriting guidelines, you will have funding in 30 days.

Do you have bad credit, no credit, or want to learn how to become a credit expert?

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