There are many people who claim to be “experts” in business credit. Just do a quick google search, and you can find many that have advice to give. But there is genuinely only one expert that knows business credit inside and out.
- There is a “secret list” of criteria that lenders have to determine your credibility. Many of the problems that business owners have in getting business credit have to do with the fact that they are not considered “credible” with the lenders. Sometimes this happens when data is input by a third party, and the information is never double-checked.
- When applying for business credit, there is typically a box where you can put your SSN. If you fill this box in creditors may run your credit, causing a hard hit on your credit. Best practices for applying for business credit includes leaving the SSN box blank; this forces lenders to use the business’s credit only to approve your application.
- 90% of businesses fail. The two biggest reasons they fail is lack of access to capital and management mistakes. So, get revolving credit. Getting a credit card that has no fee involved unless you’re using the credit is a smart business move. You have the credit if you need it, and if you don’t, no harm is done.
- In the business credit world, as soon as accounts start to hit your business credit reports with Dun & Bradstreet, Equifax, and Experian Commercial, then you’ll immediately be rewarded with a score. One of the huge benefits there is with consumer credit, there are five components that make up your FICO score. Things like length of credit history and credit mix – it’s very hard and convoluted, and it’s tough to get a really good score unless you have many years of well-disciplined borrowing. But with business credit, your scores are literally the reflection of how you pay. If you get accounts, you pay them as agreed, on time, you’ll immediately be rewarded with a good score.
- Success happens when preparation meets opportunity. Take action, and get access to capital before you actually need it – it can save your business or propel you forward.
Here Are the Top 5 Things You Need to Know About Business Credit
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