When you apply for a business loan, often times your business credit score plays a role in approval. But do not stress, there are plenty of things that you can do to boost your business credit score to avoid application denial.
Every business, small or old, big or small, strives for a strong business credit profile. That is because your business credit report can say a lot about your business. Also, it will help avoid having to pay higher interest rates and additional fees when applying for any business loan.
One of the easiest ways to boost your credit score is to make payments on time to creditors. But to boost it even more, try to make payments early. It is reported that a perfect credit score is often assigned to borrowers who make their payments not only on time, but early. The sooner you start doing this, the better because the longer you have a good credit history, the better. Don’t be afraid to use your credit cards either! You want to use them to help increase your business credit score. Just make sure to never max them out!
Of course, public records are going to come into play when raising your business credit score and obtaining a business loan. Anything that might be filed like judgements, liens and bankruptcies are public record and going to be a factor when it comes to approval and when it comes to your credit score. These things could potentially have a negative impact on your credit score and application, especially if anything financially wrong with your business is recorded.
There are benefits to obtaining a business loan from certain lenders, so be picky!
You may not be aware of this, but not all lenders report to credit bureaus. And the best way to boost your credit score is to make sure that all of your early payments are being recognized by the credit bureaus. Since you want to build business credit, the right way to do this is by working with lenders who will report everything to the credit bureaus. Before working with any lender, be up front and ask them before going forward with the process.
Remember, for a more successful chance of getting approved for a business loan, have good business credit!
It is true that your business credit score doesn’t always play a part in obtaining a business loan. But sometimes it will make your chances of approval better, plus it can also give you other benefits. When a lender looks at your credit score and is impressed, they could potentially offer you not only approval for extra finances, but also lower interest rates. If you have history of making payments early, then lenders could also offer you better terms. As long as you are using a lender that reports to the credit bureaus, your hard work keeping your credit score high with making payments early and showing consistent financial responsibly, then you are going to help maintain or build your business credit score.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.