Build Business Credit: Learn At The Business Cowboy

Build Business Credit: Learn At The Business Cowboy

What Exactly Is Business Credit?If you’re a small business owner, you know how challenging it can be to grow your company. You probably have specific financial goals in mind for your company, such as growing the business or buying new equipment. This article is filled with useful tips and strategies to help small businesses get the cash they need when they need it. Whether you’re looking for a loan from friends and family, or a traditional bank loan, there are several financing options available to you. Read on to discover what credit is and why it’s important for small businesses, plus advice on building business credit and catching the cash you need!


What is Credit and Why Is It Important for Small Businesses?


Credit is the amount of money you can borrow based on the trustworthiness of your business. Business credit is a key factor in determining whether you and your business will qualify for financing. Most people think of credit as a way to get things now and pay later, but that’s not really accurate. Instead, it’s more like a promise to pay later—and that promise is scored and recorded so that lenders can determine how trustworthy borrowers (including small businesses) are. Importantly, the amount of credit you have is tied to your business credit score. In the case of business credit, your credit score is tied to your business’s payment history, accounts, and other factors. Most lenders will check your business credit score before approving a small business loan.


Build Business Credit to Catch the Cash You Need


If you want to borrow money for your small business, you’ll likely need to build or improve your business credit score to attract lenders and investors. Most lenders will look at your business credit score as part of the funding process. If you have low or no business credit, it could be difficult to get funding. What are the advantages of having good business credit? 


  • A high business credit score (700+ out of 850) will make it easier to get funding. 
  • A high credit score can lower your interest rates. 
  • Having good business credit will help your business build a positive reputation. 
  • Finally, having good business credit could help you qualify for government grants.


Ways to Build Your Business Credit


There are a number of ways to build your business credit at The Business Cowboy. Here are some recommendations you might want to consider: 


  • Obtain a business credit card. 
  • Use your credit card for business expenses. 
  • Pay your bills on time. 
  • Pay down your credit cards each month. 
  • Get a business loan. 
  • Get a business credit line (not credit card). 
  • Consider getting an SBA loan. 
  • Consider using a business credit repair service.


Borrowing money is a common way for small businesses to get the cash they need to expand. But, not all small businesses can get the loans they need. Building credit scores is the first step to getting loans. Having a high credit score can make it easier to borrow money from banks, or even friends and family members. Some lenders use a business credit score as a way to assess how creditworthy you are. If you’re a small business owner who is struggling to get the cash you need for your company, this article will help you understand how to build business credit and catch the cash you need!

Category Business

Skye Marshall

Ivy Skye Marshall: Ivy, a social justice reporter, covers human rights issues, social movements, and stories of community resilience.