Business credit scores are like personal credit scores. The history of your company in handling of loans, paying suppliers and applying for credit are all factored in your scores in business credit. They report this information to business credit bureaus such as Equifax, Experian, and Dun & Bradstreet.
But does it really matter?
It does, because good credit in your business can open doors that may change your company's opportunities.
1) Without good business credit you cannot get any SBA loans.
Business loans have a gold standard that is backed by the Small Business Administration. The government guarantees bank lending, so they carry the lowest interest rates for small business owners. 7(a) is a simplified SBA loan program that uses an individual business credit score to check applicants. It may be difficult to get the loan if you don't have enough business credit history.
2) You have more investment options if you establish a history of business credit.
The SBA 7(a) loan is not the only type of loan that is hard to get without history in business credit. Your credit history can give access to certain kinds of business financing when you start out. A business credit score is a requirement to get lower interest rates.
3) Other companies use credit to check on you.
Pull your business credit reports so other people can understand your financial health. It is not like personal credit scores that only you and lenders you give permission to can access. These potential investors want to know if you're thriving.
4) It helps you protect your credit.
Small-business owners use their credit to get finances for their business. It can be the leverage you need to get financing that could keep your business afloat or go after a great new opportunity. You never know when that could matter so build your credit history to avoid headaches and keep your credit safe.
5) It can help you save money on financing.
Good business credit can help you save money. Online business loans usually carry a 7% - 30% APR which considers your credit score as the primary factor.
6) It can assist with cashflow problems.
Having a business credit history can give you access to more financing options that can help keep the cash flowing in your business during the down season. Some investment products like cash flow loans and invoice factoring are designed to help in issues with cash flow. Term loans will contribute to continuing the payroll while adding new positions for growth. One of the top financial concerns of business owners is cash flow, and the extra capital can go a long way.
7) It can help save money on insurance premiums.
Insurance companies do a business credit check for many types of insurance to decide if they should approve you. A good business credit score can help save money on your business' insurance premiums.
If your credit has improved there’s a good chance we can help you get more affordable insurance. Give our agency a call today if you’re domiciled in Florida.
8) You won't get credit from vendors without good business credit.
Businesses that are dependent on vendors that use net 30, 60 or 90 terms have limits on who you can work with without a business credit score. Dun & Bradstreet's Paydex score is one of the most important. It precisely measures how quickly you pay back the tradelines with "net terms." It is a product that was sent to you on credit with the promise that you'll pay it within 30 days.
Major suppliers and retailers only work with small firms that have an established history of paying on-time and a Paydex score. You might miss out on the deals of major outlets if you don't build a business credit history with the current vendors and clients.
At Valencia Insurance Group we care about our commercial insurance clients. We want their businesses to survive the hard times and thrive in the good ones. To learn more about how we can help your business with financial risks and opportunities please contact our agency at (772) 344-8899 or Click Here to request a free quote.
It does, because good credit in your business can open doors that may change your company's opportunities.
1) Without good business credit you cannot get any SBA loans.
Business loans have a gold standard that is backed by the Small Business Administration. The government guarantees bank lending, so they carry the lowest interest rates for small business owners. 7(a) is a simplified SBA loan program that uses an individual business credit score to check applicants. It may be difficult to get the loan if you don't have enough business credit history.
2) You have more investment options if you establish a history of business credit.
The SBA 7(a) loan is not the only type of loan that is hard to get without history in business credit. Your credit history can give access to certain kinds of business financing when you start out. A business credit score is a requirement to get lower interest rates.
3) Other companies use credit to check on you.
Pull your business credit reports so other people can understand your financial health. It is not like personal credit scores that only you and lenders you give permission to can access. These potential investors want to know if you're thriving.
4) It helps you protect your credit.
Small-business owners use their credit to get finances for their business. It can be the leverage you need to get financing that could keep your business afloat or go after a great new opportunity. You never know when that could matter so build your credit history to avoid headaches and keep your credit safe.
5) It can help you save money on financing.
Good business credit can help you save money. Online business loans usually carry a 7% - 30% APR which considers your credit score as the primary factor.
6) It can assist with cashflow problems.
Having a business credit history can give you access to more financing options that can help keep the cash flowing in your business during the down season. Some investment products like cash flow loans and invoice factoring are designed to help in issues with cash flow. Term loans will contribute to continuing the payroll while adding new positions for growth. One of the top financial concerns of business owners is cash flow, and the extra capital can go a long way.
7) It can help save money on insurance premiums.
Insurance companies do a business credit check for many types of insurance to decide if they should approve you. A good business credit score can help save money on your business' insurance premiums.
If your credit has improved there’s a good chance we can help you get more affordable insurance. Give our agency a call today if you’re domiciled in Florida.
8) You won't get credit from vendors without good business credit.
Businesses that are dependent on vendors that use net 30, 60 or 90 terms have limits on who you can work with without a business credit score. Dun & Bradstreet's Paydex score is one of the most important. It precisely measures how quickly you pay back the tradelines with "net terms." It is a product that was sent to you on credit with the promise that you'll pay it within 30 days.
Major suppliers and retailers only work with small firms that have an established history of paying on-time and a Paydex score. You might miss out on the deals of major outlets if you don't build a business credit history with the current vendors and clients.
At Valencia Insurance Group we care about our commercial insurance clients. We want their businesses to survive the hard times and thrive in the good ones. To learn more about how we can help your business with financial risks and opportunities please contact our agency at (772) 344-8899 or Click Here to request a free quote.
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