DIY Business Credit 4-U Guide
If you’ve been denied a small-business loan, it might be because you have bad personal or business credit. Forty-five percent of small-business borrowers who get a “no” from creditors are turned down because of their credit scores, according to the Federal Reserve Banks of Dallas, Atlanta, Cleveland and Philadelphia. Borrowers with bad credit might also have higher interest rates, higher insurance premiums and less favorable payment terms with suppliers. A strong business credit profile doesn’t just help you secure a loan; it’s also important for attracting new business. Unlike with personal credit reports, anyone — including potential customers, partners and suppliers — can look at your business credit report. You can get a small business loan despite bad personal credit. But if you take steps first to build your business credit, you’ll qualify for lower interest rates, cutting the total cost of your loan. Here are five steps to build your business credit.