Business Credit Score
Credit scores are not exclusively for individuals, your business has a credit score too! Just like a personal credit score, it can have a great influence on the ability to take advantage of several financing options. For this reason, it is important that you know about your company's credit score and the ways and means of improving it. A good credit score can make all the difference when it comes to getting that important business loan.
Are you looking for a business loan? Contact a Corporate Loan Professional to help you with all your needs today!
A business credit report contains information on your company's performance on several open lines of credit, including:
- Credit cards
- Installment loans
- Loans from relatives
- Loans from friends
- Loans from business associates
When it comes to a loan, banks will not only focus on your personal credit score, but also your company's business credit score. Your personal credit score is based on a variety of factors including debt balance on personal credit cards, the number of open lines of credit accounts, and payment history. A business credit score is made up of similar factors, yet, unlike your personal credit score, a business credit score is linked to your business' tax ID number, not social security. For this reason, it is important to differentiate your personal credit score from your business score as much as possible. Open seperate accounts for your business, maintain a seperate address and register an official corporate name so that your personal credit score does not affect your business credit score.
It is vastly important to build good credit for your business. Not only that, but you must maintain it. Credit companies will keep track of every aspect of your business' performance, from credit payments to even a loan you took out with a family member! A good business credit score all but ensures that your company will be approved for any loan you desire.
Are you looking for a business loan? Contact a Corporate Loan Professional to help you with all your needs today!
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