Easy Financing for Business-Factors That Affect Your Business Credit

January 12, 2021
Nemarampunavat

5 Factors That Affect Your Business Credit

What makes up your business credit score? What gives you the best chances

of getting a loan? Here are a few factors that play into your business credit

picture, and how you can make the most of them:

  1. Payment History: This is an important part of your business credit profile. It

is the basis of your D&B PAYDEX score. Vendors will look at your whole credit

picture and your PAYDEX is a part of that.

  1. Blanket UCC Filings: Pay attention to the order

in which you get certain types of loans, and which

UCC filings the lenders will file. Some lenders may

file a blanket UCC filing. This essentially says they

have an interest in ALL your assets. These blanket

UCC filings will then take precedence over any

later ones. This drastically reduces your ability

to get credit elsewhere. What you can do: plan

your credit with care and negotiate UCC filings according to your needs. For

example, if you need particular assets excluded from a UCC

filing to use as security for another loan, explain that in advance. That way,

you can get those items excluded from any blanket filings. Or get the loan

or account with the more specific UCC filing first. Some experts recommend

opening accounts with competing UCC filings at the same time. And negotiate

the details with each party simultaneously.

  1. Company Financials: With D&B, it’s important to make sure your financials

in your credit file are up to date. If they are not, it could negatively reflect on

your company when the lender compares available data. What you can do:

update your financials on your credit reports. Make sure they reflect your

current circumstances. And plan to update often.

  1. Company Legal Structure: having an LLC or corporation versus partnership,

etc. can also affect business credit. Lenders are less likely to loan money to sole

proprietorships and partnerships. They prefer corporations and limited liability

companies. So, if you aren’t incorporated, you should be. The advantages go far

past your ability to get credit.

There are other factors affecting your ability to get credit, like the amount of

debt you already have, and how heavily invested you are in your companyEven your personal credit can play a role in your approval or denial. Here we’ve

covered five of them. The better the all-around picture you can paint, the better

your chances of getting loan approvals.

About the Author

Brian J. Small is currently the CEO of TB HUB LLC.

At TB FINANCIAL HUB LLC, he specializes in helping business owners

establish excellent business credit scores and then leverage those scores to

access cash and credit for their businesses.

Brian J. Small is also the mastermind behind the

release of the exclusive Business Funding Suite. The Business Credit and

Funding Suite is the leading business cash and credit access system in the

world today.

For more information on business credit scoring, business credit, visit tbfinancialhub.com or

Call 800-25-5858

https://tbfinancialhub.com/

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