Your business credit score will play a role in approval for commercial loans. If your business is just starting out, you might not have an impressive credit score, but there are things you can do to boost your credit score to avoid denial.
Credit score is reflection of your financial history and that means you want it to be great because it says a lot about your business’ credibility and stability. It also plays a part in getting approved for extra funding and is a good way to avoid having to pay higher interest rates or higher fees.
There are things you should do to boost your credit score. One of the easiest ways to do this is to always make payments on time to creditors. Making payments early will boost your credit score even more. Those with perfect credit scores are known for having a track record of making payment early. Start doing this sooner rather than later, the longer you do this, the better your score. You want to use your credit cards, this can help increase your credit score, but avoid hitting the maximum limit.
Keep in mind that public records will also play a role in your credit score on top of getting approved for commercial loans. Things filed like judgements, liens and bankruptcies are public record and could have a negative impact on your credit score. That means all of the hard work you have put in boosting your score could go down the drain. You want to avoid having anything financially wrong on your financial record.
Borrow from the right lenders, ones that actually report to credit bureaus.
It is okay to be picky when it comes to choosing the right lender. Commercial loans can boost your credit score but making payments on time, but they need to be reported to the credit bureaus. That is why you should always ask your lender beforehand if they report. Banks usually always report, but it is not a requirement for lenders to do so.
Building a better credit score has its many benefits.
Having a good credit score will help with many things like lower interest rates on commercial loans or credit cards. Plus, you will usually be able to come to better terms with supplies, attract new customers and establish a good reputation with existing customers. Of course, credit scores can be calculated in a variety of ways and can vary, but always try to keep as up to date as you can on your current credit score.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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