Page 6 - Everything You Need To Know About Personal and Business Credit by Adrean Yancy

Everything You Need To Know About Personal & Business Credit
What is Business credit?
At a point in every business life, there comes a
time when you will need to purchase some
goods or make an investment, but your
business will be nancially incapable. At such a
time, you may need nancial assistance to
make that purchase because it is essential for
the growth of your business. Here is where
business credit comes in.
Enter Business Credit:
Business credit is a sort of loan or line of credit shows how worthy your business is to obtain
that a company or individual obtains for
business use as opposed to personal use. This
use can either be for the purchase of a product
or service.
Put in another way, it is a line of credit that However, there are some di erences between
Company A o ers Company B to buy goods or
services from Company B, which often is
essential to Company A's business operations.
So, suppose your business has no capital, and
you need to purchase any goods or services
from another company. In that case, you can
extend your business credit to the other
company to purchase your product or service
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What are Business Credit Scores?
Do you know that according to a survey by
Nav American Dream Gap, 45% of small
business owners do not know they have a
business credit score, 72% do not know where
to look for their business credit, and 82% do
not know how to interpret it?
If you are new to this, your business credit
score is just like your personal credit score.
While personal credit scores show your
creditworthiness, a business credit score
nancial loans and credit or to buy with a line
of credit.
The rule of thumb for personal and business
credit is to ensure you keep a high credit score.
a business credit score and a personal credit
score. A business credit score ranges from 1 to
100, while a personal credit score ranges from
300 to 850. It is important to note that the
higher your business's credit score or personal
account, the better and higher the chance of
your loan getting approved.
The question now is: What exactly is a
business credit score?
A business credit score is simply the number
that shows the degree to which your business
fund will get approval.
One of the many importance of having or
maintaining a higher business credit is that
banks, suppliers, Small Business
Administrators (SBA), and business lenders will
factor in your business credit score and FICO
before extending a loan or a line of credit to
your business. This means a high business
credit score is required.
Put in another way, your business credit score
is highly crucial to the success of your
business.
Now that you understand what a business
credit score is, let's look at the factors a ecting
the business credit score.