Small Business Credit Access
So, you want to become a business owner? That is fantastic!!! One of the first things that you should ask yourself is “How is my credit?” When first starting a business, money can be extremely tight. Most experts will say that the focus should not only be to increase sales revenue but to build credit worthiness. Small business credit access is key to them growing faster, hiring more employees and turning a profit. New businesses account for 20% of new hires in the US economy.
Why is credit in good standing important? Let’s say that you have come up with the perfect business for yourself and you now want to open a place that will showcase your goods. You find the perfect place where traffic flows, an area where money is flowing so your customer base would be amazing. You can just imagine the volume of dollars that you will rack up. Now it’s time to call the realtor. She/He checks your credit score (it is procedure and you can’t get around it) and to your disappointment, you don’t get the property because your credit score is low.?
Getting Credit
Credit is an absolute asset and is the basis for which most companies strive for and rely on when tangible funds are scarce. This asset can be used to purchase, at low interest rates, cars, laptops, office space, furniture, internet, supplies-everything you need to run your business. If your credit score is low, it may be possible to get all these things but you will pay at a much higher rate and your net income will significantly be decreased.
A business that has good credit has the advantage of the ability to be financed if needed. A business owner will be able to limit if not eliminate the use of personal finances. With credit as an asset, a business can secure loans, credit cards, buy supplies with minimal risks.
Reasons Your Business Needs Credit
Having credit early on in a business can be critical to getting your business off the ground. It can help you pay for your initial lease for a store front. Or all the equipment you need to run your store. Especially during those early months while you are getting your business up and running and your don’t have any revenues yet, let alone profit. It can take a lot of cash to just get started. Having access to this equity can help make sure your business gets off to a good start.
Bigger Business = More Credit
As your business grows you may start to need to buy more inventory to keep up with demand. Even though sales are going well this can be difficult to do as your capital is tied up elsewhere. So having the ability to obtain credit again is crucial
There are so many reason why a small to medium sized business will need access to credit. Doing so at the best available rate can greatly help to reduce costs.
To get assistance to resolve credit issues, please visit www.myfes.net/jpowell11. This company and its customer service is amazing and highly rated. Review the videos to understand how credit worthiness can expand your $$$.
About the Author
Jackie Powell
Financial Education Service Agent
Jackie is an expert in small business finance strategies. Her education program is geared to making sure that companies can grow and reach their targets while acquiring the capital needed to reach those goals.
About Small Business Care:
At Small Business Care we continually work to find tools and solutions for small businesses. We hope that you will find this information on appointment scheduling aiding client retention as useful as we and some of our other readers have. We are always looking to profile successful small businesses, the tools the use and general strategies on how to improve your business. On Friday’s we like to have a focus on financial issues that small business are likely to see. We have a range of experts in the financial field to help make sure your small business avoids these major missteps.