Steve Strauss, USA Today small business columnist, lawyer, and moderator for our Access to Capital events, recently answered follow up questions that were asked at the event on USA Today’s “Ask an Expert” section. This particular article aims to help those facing bad credit issues and is the first part of a two part series. His article emphasizes the importance of establishing and maintaining good credit, especially for those who have set their sights on owning their own business.
When it comes to getting the funds you need, whether they are for business or your personal life, it is imperative to have a good credit score. Unfortunately, while people are aware of the significance of credit, they oftentimes don’t take action until it is too late. Strauss goes on to outline his process and the right questions that will help explain how to get a handle on your credit. You can check out his helpful article here: Bad Credit Issues.
In his follow-up article, Strauss will discuss how to go about acquiring the credit you need for your business to succeed.
One aspect of establishing good credit is closely monitoring your business credit profile. CreditSignal®* is a free product that will help keep you informed and alert you of changes in your D&B business credit report. Another piece of advice keeping your personal and business credit separate. Below, we’ve answered a couple of commonly asked questions, but if you would like a more in-depth explanation, check out our busienss education center videos on the subject.
Why should business and personal credit be kept separate?
Using personal credit for your business may seem like a good idea, but this can be very risky. If a company or a bank is looking to do business with you, they could pull your company’s credit report. Each time your report is pulled, your personal credit will be affected. So, as your company grows, so does the risk of your business credit becoming a personal liability.
What is the difference between business and personal credit?
Good personal credit can help you when buying a house, getting a loan, and applying for credit cards, amongst other things. On the other hand, good business credit is important when qualifying for business loans, lowering your interest rates, increasing cash flow, negotiating better payment terms, and even attracting new customers.
Interested in learning more?
- Small Business Success Podcast: Improving Your Business Credit
- Credit Management for Your Business
- Need Capital? 57 Insights on Traditional Loans, Alternative Funding, Startups, and Crowdfunding
Photo Credit: Natloans, Flickr
*CreditSignal only indicates that your D&B scores and ratings have changed and alerts you when your business credit file has been purchased. To view actual scores and ratings and learn about what industries are purchasing your D&B file, we recommend that you upgrade to one of our business credit monitoring or credit building solutions. Please note, due to the proprietary nature of these inquiries and inquiry requests, only the industries in which the purchasing customers reside will be revealed.