Revolving credit for business
Angela states that small business owners can benefit from using credit strategically. There is a difference between good credit and bad credit. If a small business owner uses credit to grow and invest in their business, then it could be a great use of credit.
The key is to start with a strategic plan to access what the needs of the business are. If the business is growing and there is a need to buy additional equipment, expand offices or even hire new employees, the use of credit can be a good thing.
But sometimes getting credit is easier said than done. If the business does not have a good credit rating, or if the business has not been in operation for a while, getting access to credit can be a challenge. If this is the case, first try the bank where your business checking or savings account is. You may already have a relationship built with them. If that doesn't work, try a credit union if you are already a member, you may be able to leverage your relationship with them.
While your personal credit score is tied to your Social Security number, your business credit score is tied to an EIN. Having a good credit score for your business is key and is a good goal to strive for if you feel your score needs improvement.
A good business credit score can help you take out loans at a lower rate and is based on payment history, age of credit history, debt and debt usage, industry risk, and company size.
It is not as easy to find out your business credit score as it is your personal credit score. Dun & Bradstreet, Equifax, and Experian can provide a business credit score, most for a fee.