By
Shawn M Casey(e)
Business credit report scores are used to judge the credit worthiness of your business.
A high credit score equals a better chance of obtaining future capital for your business needs.
Banks you may approach to obtain a line of credit for your business are not the only people who will take your credit scores into account.
Here Are A Few Other Examples Of People Or Institutions That Will Most Likely Take A Good, Hard Look At Your Business Credit Report Scores:
1. Vendors Will Look At Credit Reports. Vendors need reassurance that they are going to be supplying goods to a business with a good reputation for making timely payments. Poor business credit report scores are almost like first impressions; if they are not good enough, it can ruin a shot at a good thing.
You want to impress the vendors you work with so they will report your positive credit to reporting bureaus. So, set your standards high from the very beginning to guarantee you create the best score possible for your business.
2. Other Credit Reporting Bureaus. When you choose a credit bureau for your profile, you do not need to stay with them forever. However, your business scores will transfer over to the new bureau.
Some companies are getting picky of the businesses they showcase. You will have a harder time, even if you are only transferring your profile, if your business credit report scores are low.
3. Potential Partners In Business. There may be a time when you would like to bring another owner on board with your business. A true business person will ask to see your business report scores before signing anything stating they are affiliated with your business.
A partner will want to evaluate all aspects of you business before making a decision to join you in ownership of the business. It will be extremely difficult to find a partner willing to "take a chance" on a business with poor credit scores and business practices.
Future lenders will use your business credit report scores to evaluate your likelihood of making appropriate payments on a loan or credit card.
So, I have explained who may want to take a look at your business credit report scores. I did not talk about how to maintain a good score for your business. The first thing you need to do is create a part for building credit in your business plan.
Set goals per month of how much credit you need or want to have for your business. Then, build the best relationships you can with your vendors.
And the most important of them all - ALWAYS, Always, Always pay your bills on time. Your high standards will work out when you have an excellent credit report for your business!
A high credit score equals a better chance of obtaining future capital for your business needs.
Banks you may approach to obtain a line of credit for your business are not the only people who will take your credit scores into account.
Here Are A Few Other Examples Of People Or Institutions That Will Most Likely Take A Good, Hard Look At Your Business Credit Report Scores:
1. Vendors Will Look At Credit Reports. Vendors need reassurance that they are going to be supplying goods to a business with a good reputation for making timely payments. Poor business credit report scores are almost like first impressions; if they are not good enough, it can ruin a shot at a good thing.
You want to impress the vendors you work with so they will report your positive credit to reporting bureaus. So, set your standards high from the very beginning to guarantee you create the best score possible for your business.
2. Other Credit Reporting Bureaus. When you choose a credit bureau for your profile, you do not need to stay with them forever. However, your business scores will transfer over to the new bureau.
Some companies are getting picky of the businesses they showcase. You will have a harder time, even if you are only transferring your profile, if your business credit report scores are low.
3. Potential Partners In Business. There may be a time when you would like to bring another owner on board with your business. A true business person will ask to see your business report scores before signing anything stating they are affiliated with your business.
A partner will want to evaluate all aspects of you business before making a decision to join you in ownership of the business. It will be extremely difficult to find a partner willing to "take a chance" on a business with poor credit scores and business practices.
Future lenders will use your business credit report scores to evaluate your likelihood of making appropriate payments on a loan or credit card.
So, I have explained who may want to take a look at your business credit report scores. I did not talk about how to maintain a good score for your business. The first thing you need to do is create a part for building credit in your business plan.
Set goals per month of how much credit you need or want to have for your business. Then, build the best relationships you can with your vendors.
And the most important of them all - ALWAYS, Always, Always pay your bills on time. Your high standards will work out when you have an excellent credit report for your business!
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