A Bad Credit Score Doesn’t Have To Be Bad For Your Business
There are a number of ways to define the word “credit”. But, in the world of business finance, the most appropriate definition would be “the ability of a consumer to obtain goods or services before providing payment, based on the trust that payment will be made in the future.” Notice the word “trust” in that definition? Essentially, your credit score is the level of trust you’ve attained from those who may be in the business of lending you money.
So how good is your credit?
That’s just another way of asking the question, “How well can you be trusted?” When you have a bad credit score, it’s the equivalent of being called untrustworthy. It doesn’t feel very good, does it? This is especially true when lenders don’t know your whole story. A bad credit score could come as a result of missing payments on a credit card account. But what if you just so happened to have one or two bad months? Is it fair to judge them against the rest of your payment history?
Unfortunately, small business owners have to deal with the whole “bad credit” stigma when applying for business loans with their banks. Most often, a poor credit score is listed as a top reason such loan applications are denied. It puts merchants in very tough positions as the lack of funding can translate into an inability to grow a business.
As explained by Meredith Wood on AllBusiness.com, poor credit scores “can lead to a number of problems: rejection of loan applications (or high interest rates if you are approved), an inability to acquire inventory or upgrades, and worst of all, the possibility that you won’t be able to get your business off the ground.”
Can your personal credit history impact your business funding opportunities?
In a word, yes. As Wood makes clear, “it’s likely that banks will weigh your personal credit history as you go through the application process. After all, if the past precedent, what better way to assess your risk as a borrower than by looking at your personal credit score, especially if you don’t yet have a business credit score.”
However, as the title of today’s blog insists, your credit history doesn’t always have to be bad for your business. At Synergy Merchants, we proudly offer small and medium-sized business owners in Canada an excellent business funding alternative. Our unique merchant cash advance program offers you the opportunity to secure funding for your business without having your credit history play any role in the matter.
And that is because a merchant cash advance is an advance on your future credit card and debit card sales. It is a not a loan. It is not borrowed money. It is a payment for your future sales which gives you the opportunity to do with it, as you please!
For more information about our unique merchant cash advance program, please don’t hesitate to call Synergy Merchants at 1-877-718-2026 or email us at email@example.com. You can also apply online for a free, no obligation quote!