
PPP Loan Forgiveness Misconceptions
Many businesses find value in taking out a merchant cash advance. But, they may need to consider using a reverse consolidation to help pay it back.
Any business with the goal to expand should focus on building business credit from the get go. Even if you’re not ready to apply for business funding today, the time will likely come in the future. To qualify for business funding and manage your working capital, it’s important to build your business credit. There are several steps you can take to do so, no matter where your business is currently at in regard to its finances.
Here, we will break down the definition of business credit and share some ways to build business credit. This way, you can properly assess your working capital.
Business credit is a measurement tool that is used to qualify businesses for financing methods. In the same way that people have credit scores, businesses too have their own credit history and credit score. Business credit bureaus like Equifax, Dun & Bradstreet and Experian keep track of a business’ debt records.
This credit report is likely to be used by creditors, lenders, suppliers and insurance companies when they need to evaluate your creditworthiness to approve or deny applications and deals.
While there are ways to access business loans for bad credit, it’s less than optimal. Instead, you can follow these recommendations to build your business credit along your journey.
Some of these tips can be performed from the outset of starting your business. Others may happen over time. Either way, if you consistently take care of the following, your business credit will grow.
We’ve touched on some of the benefits of having good business credit already. But, to make sure it’s extra clear, here’s why it’s so important:
Building business credit is a great approach to expand your access to business funding options. The type and amount of debt you take on affects your working capital, so it’s the best case scenario not to carry debt.
With good business credit, you will be able to secure the best loan terms and deals possible as your business will be considered trustworthy since you’ve built a history of paying what you owe.
Many businesses find value in taking out a merchant cash advance. But, they may need to consider using a reverse consolidation to help pay it back.