Business credit is the report that shows lenders how eligible you are for credit financing. Many people rely on credit for major purchases, and many SMB owners rely on debt financing for
leverage. Although not as stable as using cash, purchasing through credit can make life more comfortable, especially when a business cannot use large sums of cash in one go.
Personal credit is your personal credit history, while business credit deals with your business’s credit history. Both are calculated using different factors and have different limitations and should be kept separate. The convergence of both opens up a path for risks that can negatively impact you personally or your business.
A business with stable business credit can qualify more for trade credit and financing and establish itself as a trustworthy enterprise. Having a great business profile will help you qualify for loans, negotiate better terms with clients and suppliers, and lower your rates on the business’s cost of capital. Thus, having a sound business credit is vital to your business’s future success. It’s important to remember that business and personal credit can influence the other, even if they should be kept separate. For instance, having good personal credit is a factor for financers in assessing your business credit.
Monitoring your business credit as an SMB owner is vital for your business’s financial health. You want to ensure your business credit monitoring is seamless. Business credit is flexible and can
constantly shift, calling for close monitoring to ensure your credit file is always accurate. Careful monitoring ensures that you, the SMB owner, can work stress-free and focus solely on your
business’s internal affairs. With our partners’ unrivaled technology and our understanding, we can help you build long term value for your business. You can establish both your business credit profile and your personal credit score, without the need for a personal guarantee. We can assure you an A rating with Dun & Bradstreet (paydex scoring), Experian Business Credit, and Equifax Business Credit through our partnerships.