Setting up a business all the way from scratch is no bed of roses. From funding to operations, recruitment to finance- everything from A to Z has to be taken into account! At a time like this, when costs and revenues are topping the priority list- what’s the first thing that comes to your mind when you think of a steady, budding business? Is it unhindered cash flow? A strong consumer presence? A sturdy network or client connectivity? While most of these things are no doubt super important for a growing business, one of the primary requirements that small businesses often miss out on is the need for a steady credit score. Even when some businesses are aware of the concept of credit score, some, knowingly or unknowingly ignore the credit score fluctuation. Now, if you’ve found yourself wondering why do I need to fix credit score fast– we are here to tell you why a good credit score is as important as smooth cash flow or uninterrupted operations, especially for a budding start-up like yours.
When do Credit Scores fall under scrutiny?
Now before we start with how credit scores can help or why credit repair services can benefit you, let us tell about when your credit score can be brought under scrutiny. Ideally, there are 4 major scenarios to play-
- If you’re establishing utility services
- If you’re leasing property or asset in the company’s name
- If you’re looking into new trade channels for better vendor connectivity
- If you’re applying for business loans, financial loans, business credit cards etc.
How is Your Business Score Evaluated?
The parameters based on which your business credit score is evaluated goes as follows-
- Credit score history
- Past business history
- Timely payment history
- Late payment history
- Open credit lines
- Number of credit applications
- Number of years/ months in the current business
The scores usually range from 1-100 and investors or loan providers are usually looking out for at least 70-75 credit score.
How can good credit better your business future?
Now that we have the preliminaries out of the way, let’s focus on the primary topic- why is a good credit score so important, especially for start-ups. We have streamlined some of the most essential reasons for you-
- Qualifying for loans easily-
A start-up is usually under a lot of financial pressure with the newly-built operations, system, and work module yielding more losses than benefits, to begin with. To top that off, the start-up owner has to continue investing so that the losses can slowly be replaced by gains. However, financial assistance from a trusted third-party at around this time is crucially important and that’s where your impeccable credit score comes to play. From increasing your chances of qualifying for smaller loans to getting easy approvals on the bigger ones- everything can be seamless.
- Qualifying for improved returns-
Needless to say, your credit score acts as the face for you or for your organization when it comes to financial assistance by third-parties. Everyone wants to be completely sure their money is being invested for good and would yield better results in terms of interest. However, with a good credit score, you can actually expect your soaring interest rates to relax since a good credit background acts like untold security to your name.
- Reducing personal liability-
Every entrepreneur with a handsome business background or inheritance tends to juggle between business loans and personal liabilities causing a melting pot of financial confusion. This is all the more common for start-ups who are desperately trying to scrounge up the resources in the initial stages. However, a good credit score can help you reduce your personal liability significantly without any hassle.
- Maintaining smooth vendor relationship-
Everyone from clients to vendors willing to shake hands with you professionally has already gone through your impressive credit scores before taking the plunge. Credit scores are usually open to just about anyone who wants to check it which means a good credit score can, in fact, open up multiple opportunities for you and your business to prosper.
- You grow with your business-
In the very end, considering all the points mentioned above, it’s safe to say a smooth financial backbone and uninterrupted business flow go hand in hand. This means you grow both professionally and psychologically while your business prospers.
How to fix credit score fast?
A good credit score in the books can any day bring endless opportunities with itself, but if you’re still struggling to fix your credit score, our expert credit repair services can help you with some of the initial milestones to conquer for an improved credit score-
- Keep a constant check on your credit files. Most entrepreneurs are born leaders and exceptional management moguls. However, when it comes to finances and credits, it’s always better to hire professional credit restoration services to help you keep a constant check.
- Never leave pending bills and avoid late fines as much as possible. When it comes to credit reimbursement, late or no payments can severely impact your credit scores.
- If you find yourself struggling with debt- try consolidating all your fund into one instead of juggling multiple sprout-alike small and meagre loans.
- Keeping yourself updated with the latest credit score trends can also be of big help.
Even though these credit repair tit-bits are quite on the surface-level, in order to fix credit score fast, we best advise shaking hands with professionals who can effectively repair credit score dilemmas or problems without you having to fret or fight financial stress.