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 score?
- How to check your score
- How to fix a low score
- How to apply for business funding
What is a good credit score?
You may not think that a credit is important. But is helpful for getting the best interest rates on mortgages, auto loans, and even business funding.
A good score is 650+ for business funding.
A 680+ is even better and gives you more funding options.
The stronger your credit, the better your options for attaining funding. Lenders don’t want to just give you money.
They want to know you have a history of repaying your debts. Your credit score and report provided a snapshot of your credit history for lenders.
Check your score
Now that you know what is the ideal scores, you should check your credit.
You can get 3 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 best.
Fix your credit score
Now, what if you have a bad score? If your credit score is lower than 650, you must determine the cause for the lower score.
Look through your credit reports and see if and how you can improve your records.
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 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 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 history, you are one step closer to getting business funding.