How Important Is A Good Credit Score For Business Loans And Funding?

At some point in your business, you may decide that you need a business loan or funding to start or grow your business.  There are many funding solutions available to you.  So many options that it can be confusing at times.  A good credit score is the first step for getting the business funding you need to start and grow your business.  Let’s look at what is a good credit score, how to check your credit score, how to fix a low credit score, and how to apply for business funding.

What is a good credit score?

You may not think that a good credit score is important.  It is helpful for getting the best interest rates on mortgages, auto loans, and even business funding.  A good credit score is 650+ for business funding.  A 680+ is even better and gives you more funding options.

Check your credit score

Now that you know what is a good credit score, you should check your score.  If you haven’t checked it recently, you should check it now.  You can visit this website to check your credit score.  You can get 3 credit reports and your FICO score.  Then you know exactly where you stand when it comes to your score.  If you have a credit score of 650+, you have a good score for business funding but a score of 680+ is ideal.

Fix your credit score

Now, what if you have a bad credit score?  If your credit score is lower than 650, you must determine the cause for the lower credit score.  Look through your credit reports and see how you can improve your score.  Then you must take action to correct it and put yourself in a better position to qualify for business funding.  Depending on the route you take to correct your credit score and your current credit score, you may be able to fix it fairly quickly or it may take some time.  Once you raise your score to 650+, then you can apply for business funding.

Apply for business funding

If you have a good credit score of 650+, you can schedule a free consultation for business funding.  There are other criteria that must be looked at.  But with a good credit score, you are one step closer to getting business funding.