photo credit: orphanjones
ActiveRain recently posted an article revolving around obtaining credit for your business. For those of you who are thinking about starting your own business for the first time, this would be a great article for you to read. Most people don’t realize that it’s better to have a business credit report to show the lender. This will enable them to fund you more money for your business.
If you have no business credit report then the lender has no choice but to go off of your personal credit report to guarantee the loan. This means that you will get less money loaned to you and you take the risk of your personal assets being put up as collateral which could be costly for you and your family in the long run.
Building a strong business credit rating is vitally important to your success. Without it, you’ll pay much more (in higher interest rates) for the money you borrow … if you can borrow at all. In fact, banks – which say they want to help small business owners – actually turn down over 97% of all business loan applications.
Did having a good business credit report prove to be beneficial for you?