Similar to personal credit reports and scores; business credit reports are constantly changing because of a variety of data. This ongoing change is based on a variety of factors such as the number of reported transactions, outstanding balances and payment activity to name a few. The accuracy of the data being reported about your business is crucial. It shows your company’s ability to meet its financial obligations with vendors, suppliers,…
An understanding of business credit terms is important for small business owners. Similar to personal credit, business credit determines whether your company can be trusted by the way it manages money. Like personal credit, business credit is a reflection of how well your company manages money. Why is business credit important? The Nav American Dream Gap Survey, 2015 revealed of small business owners surveyed, 45 percent did not know they have…
Many businesses start on a shoestring budget so it can be challenging to build the business credit you need to expand your business. But every business has to start somewhere and building your business credit can be done with the right action plan to guide you. In this article, we’ll cover how to build business credit without cash flow coming into your business. The first place to start is with your existing…
As a business owner, establishing a distinct separation between your personal finances and your business finances is pivotal for protecting your own assets and credit. This above all things should be a top priority for managing money the right way. An incorporated business is treated as a separate legal entity and it must be treated as such. For starters, separation between personal and business finances should be on the top…
For business owners, one of the major reasons to have a business credit card is to keep your business and personal expenses separate. This allows you to track your business spending while providing financial flexibility. Since business credit cards offer a revolving line of credit, they can be used at a moment’s notice to cover unforeseen expenses, or to make a specific business purchase, or to cover bills when cash is…
Access to cash and credit is a business’s lifeline. Business credit allows a company to borrow money for purchasing products or services. It is based on the trust that payment will be made in the future. Why establish business credit? For business owners, having a separate legal entity, such as a corporation or limited liability company, provides the unique ability to create a credit identity with business credit reporting agencies, also…
A website is an essential element for running a successful business. A business without a website can potentially lose out on great opportunities since potential customers can’t reach you, find you and learn about you online. Creating a small business website can lead to many different ways to market your business and help it grow much faster than relying on traditional marketing methods alone. If you’re looking for a way to…
Choosing which business structure is right for you is a crucial step when starting a business. The entity you select has legal, financial and operational implications. Here are three factors to consider when choosing a business structure. Business Taxes Business owners must meet all federal, state and local tax obligations to stay in good legal standing. The type of business structure you choose impacts your personal liability and which taxes your…
When it comes to business credit, there’s no standard scoring model for assessing risk. Lenders, suppliers, banks, leasing companies, businesses, and finance companies all use different reports and scoring models depending on which business credit reporting agency they subscribe to. Your company’s business credit report shows banks, lenders, suppliers, vendors, and other businesses how your company handles its financial obligations. Here are five factors that impact your business credit. Creditworthiness Lenders have to believe…
As individuals we spend years establishing, managing and protecting our good personal credit ratings. With strong personal credit, access to favorable interest rates and terms when applying for credit and financing may be available. When you have the ability to obtain financing at the best available bank rates for items such as a new automobile, home, or investment property, you have established a strong personal credit asset. As a business…