Building Strong Business Credit
Friday, November 6th, 2009There is a difference between presenting your personal credit score from your business credit score. The personal credit rating report shall be separate and independent from your company’s business credit rating report. However, there are creditors who may require your personal credit score reports. Take note that your personal exposure is absolutely your prerogative.
You must be aware that presenting only your company’s credit report helps avoid personal lawsuits to your personal assets. Building business credit history, payment performance, and rating is crucial to your business sustainability. It is wise to seek the help of building credit rating services trusted by lenders and creditors to discuss the technicalities of maintaining business credit rating reports.
It is apparent that maintaining better or higher credit score helps facilitate loan grants or approvals. The creditor will always look at your credit history to assess payment performance and decide the amount of exposure or risk you are willing to acquire and extend to you business. In America, there are three main credit bureaus that rate your personal credit.
They are the Equifax, Experian, and the Trans Union. These three bureaus used different score rating tools and show different results. Creditors usually obtain the average result to be able to decide the length, rate, and the amount they are going to lend your organization.
In the business credit report, creditors obtain important information to help them evaluate the financial health of your company as such as the amount owed, the payment history, the terms and length of credit extended to your company, the recently availed credits, and the kind of credits you have obtained in the past or have at present.
This could be complicated and confusing on your part and you might feel the need to look for the professionals for building company credit. They will assist you in developing your company’s credit history so you might have more borrowing opportunities to lenders and creditors. Having a considerably favorable FICO score would mean favorable credit terms from lenders.
