How Badly Can Your Personal Credit Score Impact Your Business?
Do you have bad credit? Don’t worry, you’re certainly not alone. If you’ve encountered some financial trouble in your past, it’s no reason to feel bad. Of course, there are those who will attempt to make you feel bad about. And that’s not fair! After all, just because you may have been late making payments in the past, it doesn’t mean you’re not trustworthy today.
Bad credit will stop banks from loaning you their money.
Sadly, that’s just how credit works. Your trustworthiness is literally judged by the ways in which you borrowed and paid back money in your lifetime. And yes, if you’ve defaulted on personal credit cards, for example, it can impact your company’s ability to secure funding. As Jeffrey Bumbales notes on Credibly.com, bad personal credit can hurt your ability to obtain a business loan.
“The first, and perhaps most commonly-known side effect of bad credit, is an inability to get loans or financing,” he writes, “Much like with your personal credit, business credit is one of the first things small business lenders look into when determining your eligibility for a loan. Your credit score doesn’t have to be flawless, but a score that’s too low might be a warning sign that you won’t be able to repay your debts or manage your finances properly.”
Bad credit can cause issues with vendors.
As a business owner, you surely encounter numerous conversations with vendors and suppliers. To run your business, you need to stock the shelves with inventory and/or supply your staff members with proper tools and equipment. Naturally, you have to pay for the abovementioned materials. But what happens if your personal credit score is low? According to Bumbales, your credit score may affect your ability to conduct operations and order needed supplies.
“Many utility companies and property management companies will consider your credit score when determining your eligibility to rent office space, open an account with the electric company, and more,” he explains, “Above and beyond this, if your business operates in retail or manufacturing, you may find yourself unable to buy retail stock, raw materials for manufacturing.”
Bad credit can prevent your business from getting off the ground.
Are you still in the process of establishing your business? If so, it would help if your credit score was strong. Bumbales reveals that many small businesses require a number of loans to cover basic start-up expenses.
“A poor personal credit score can affect your ability to get the financing you need to start your business in the first place, which could mean your plans for a small business might be over before they even have a chance to begin,” he details.
Bad credit will not impact your ability to secure a merchant cash advance!
Synergy Merchants’ unique merchant cash advance program enables all types of business owners to get their hands on much-needed cash. Regardless of your credit history or length of time in business, you can be approved in less than 24 hours! For more information, please don’t hesitate to call Synergy Merchants at 1-877-718-2026 or email us at firstname.lastname@example.org. You can also apply online for a free, no obligation quote!