(Shared by Amanda Walter, Business Intern with OSU South Centers)
By Kali Geldis, Nav
Most business owners are familiar with their personal credit scores. You’ve probably used your personal credit score to get credit cards, buy a home, or to rent an apartment. But now that you’ve started your business, you can start building a credit history that shows lenders your business is a good bet.
Business credit scores are similar to personal credit scores in many ways. Your business’s history of applying for credit, paying suppliers on time, and how you handle lines of credit or loans all factor into your business credit scores. That data is reported to business credit bureaus like Dun & Bradstreet, Experian, and Equifax. (You can check your business credit data for free every month at Nav.)
Here are some reasons why a business credit score matters – the doors it can open can be game changing for your company.
1. You can’t get some SBA loans without it.
2. You have more loan options once you establish a business credit history.
3. Other businesses use it to check up on you.
4. It helps you protect your personal credit.
5. It can save you money on financing.
6. It can help with cash-flow problems.
7. It can save you money on insurance premiums.
8. You can’t get trade credit with some big players without one.
To read the full article, follow this link.