Lenders, investors, and other parties can benefit from business credit scores.
In Cadillac, Michigan, Ryan Cicchelli, the owner of Generations Insurance & Financial Services, argues that business credit ratings are a quick way to determine a company's trustworthiness and reveal potential dangers for lenders and other interested parties. "Creating transparency in company will enable everyone to make more educated decisions, and that is the ultimate goal of making this precise information freely available."
While company credit ratings are significant considerations for lenders when deciding whether to grant credit, business owners seeking for new investors may also find a solid credit score and credit report to be crucial. "After all, if your goal is to recruit angel investors or seed finance, you absolutely want to have a favorable public profile in order to negotiate the best terms," DeCandia asserts.
William Haight, a financial advisor at Capital Choice Financial Group in Phoenix, advises sole proprietors who haven't yet obtained an employment identification number or taxpayer identification number that these numbers can affect financing decisions.
Similar to this, lenders may want a personal guarantee before extending loans to newer enterprises without a strong credit history, which would necessitate giving the lender access to your personal data.
According to Haight, business owners should be aware that if they supply their Social Security number, a review of their personal credit will be conducted and linked to the loan.
In Cadillac, Michigan, Ryan Cicchelli, the owner of Generations Insurance & Financial Services, argues that business credit ratings are a quick way to determine a company's trustworthiness and reveal potential dangers for lenders and other interested parties. "Creating transparency in company will enable everyone to make more educated decisions, and that is the ultimate goal of making this precise information freely available."
While company credit ratings are significant considerations for lenders when deciding whether to grant credit, business owners seeking for new investors may also find a solid credit score and credit report to be crucial. "After all, if your goal is to recruit angel investors or seed finance, you absolutely want to have a favorable public profile in order to negotiate the best terms," DeCandia asserts.
William Haight, a financial advisor at Capital Choice Financial Group in Phoenix, advises sole proprietors who haven't yet obtained an employment identification number or taxpayer identification number that these numbers can affect financing decisions.
Similar to this, lenders may want a personal guarantee before extending loans to newer enterprises without a strong credit history, which would necessitate giving the lender access to your personal data.
According to Haight, business owners should be aware that if they supply their Social Security number, a review of their personal credit will be conducted and linked to the loan.