Good credit can work highly in your favor, especially as a business owner. However, it can also be confusing. Understanding the importance of credit scores can help you maximize your credit score to the benefit of your business. So, let’s start there.
Why Your Credit Score is So Important
The number one reason why your credit score matters is that it influences your chances of getting approved of for a loan or credit cards. Poor credit scores can prevent you from securing the business funding you need to be successful.
Also, credit scores affect your interest rates. Taking out a loan with bad credit can lead to exponential debt. This, in turn, makes it more difficult to repay your debts. This affects your ability to borrow more later it can also cost you more in the long run. You can also get denied for loans in the future if you fail to pay back your debts according to the loan plan.
Why Your Credit Scores Matter with Business Loans
While you might be thinking that your personal credit score doesn’t affect your business, the reality is it does. Your personal credit history is a factor most lenders, especially large banks, look at. After all, your credit score is a direct link to your reliability in paying back debt.
As a new business owner, you have no business credit history to fall back on. Your personal credit history is all banks can look at to decide whether or not to lend to you.
But what can you do if you don’t have a good credit history?
How Legend Funding Can Help
Legend Advance Funding offers lending services for business owners who have a poor credit history. Merchant Cash Advance is a powerful tool to get your business funded quickly without worrying about your credit history. Whether you need emergency funding or growth funding, we can provide you with the credit you need to fund your business without a high credit score.
Give us a call if you’re looking for an affordable loan for your business. We look forward to speaking with you soon.