A business credit profile that has great scores and indexes plus a nice variety of creditors and tradelines, can bring the greatest opportunities for the health and success of a growing company. Unfortunately, many owners overlook or don’t understand how to properly establish and build business credit scores. We have also found that even established companies with detailed credit profiles, are not checking their reports on a regular basis. Damaging (even if incorrect) information lingering on business credit reports can cause significant damage to scores. Business credit is unregulated, so anyone can purchase reports to review payment history. If you have negative information reporting it will make you a risky borrower, and due to the unregulated nature of business credit you do not have to consent or be informed of inquiries on commercial credit.
Business credit is an asset that not all owners account for, it’s often overlooked.
Here are a few reasons why having a healthy business credit profile with low risk scores and indexes can be a great asset:
- It can help protect the owner from personal liability by separating individual and personal credit.
- Leads to maximized approvals for merchant cash advances & factoring.
- You’ll pay the lowest pricing on factoring, cash advances, lines, and loans.
- It reflects good management skills and payment history to lenders, vendors, and potential accounts.
- The business will be well prepared for qualification on bank lines of credit and overdraft protection.
- It reflects well when being compared to competitor’s business credit.
- It will be much easier to get credit card approvals for stores, gas cards, and stream line credit cards in the company name.
- Business lines and credit cards offer larger lines and better rewards than personal accounts if paid-on-time and used responsibly.
- Your business will gain credibility and reflect more stability.