It’s no stretch to say that the right business funding plays an immense role in making your small business a success. If you need to get approved for a great a business loan, often you’ll be required to provide a good credit score. A good credit score is based on certain important issues that you can find below.
- Keep Your Business and Personal Finances Apart
After establishing a business line of credit, don’t dip into your personal finances to have your business subsidized. Keep them apart as this way you won’t be obliged to put your personal credit on the line each time you’re applying for business funding.
- Have Business Credit Accounts Established
To establish a business credit history, you should have accounts that report payment history to major reporting agencies like Dun & Bradstreet, Experian, Equifax, or FICO. Your credit history is not a problem for firstamericanmerchant.com. FAM is a reputable business loan provider and payment processor that specializes in the high risk industry.
- Have a Good Payment History
Most commercial credit scoring models consider payment history as the most crucial factor. Thus, you should try to maintain a good payment history by never being late on your bills. There are lenders who may also take into account your income and cash flow (from bank checking accounts, credit card receipts, etc.), so having a strong cash flow will help you enjoy additional funding options. However, this doesn’t have direct impact on your business credit scores.
- Check Your Scores Often
Checking your personal or business credit scores will never put you into trouble. This way you can get both a composite picture of where you stand in terms of credit and show any problems that might badly influence your credit profile. As soon as you see an unexpected and strange drop in your business credit score from one month to the next, it may be associated with a reporting error can be corrected.