When people set up their own businesses, they will require access to a steady stream of funds. This is especially so for small and midsize business owners, who rely extensively on these funds to drive their businesses. Not all business owners have sufficient capital of their own for funding their business requirements. So, the only recourse available to them involves taking credit.
Business (or commercial) credit denotes the funds a company borrows from a bank or a financial institution to meet various requirements. Banks and financial institutions provide business credit in the form of loans such as:
Experian, Equifax and Dun & Bradstreet are the three predominant commercial credit scoring companies. All these firms use different scoring systems for evaluating businesses. However, unlike personal credit scores that range from 300 to 850, business credit scores range from 0 to 100.
Commercial credit enables business owners to:
Building business credit is a slow and steady process. To build commercial credit:
The Small Business Credit Survey (SBCS) provides details on the financing needs and borrowing experiences of businesses with fewer than 500 employees. Conducted by the seven Federal Reserve Banks, the 2015 survey reveals that:
At Midwest Corporate Credit, we connect small business owners with the financing they need. At the same time, we deal with the often lengthy correspondence they share with the lenders to speed things up. Our hassle-free application process and approval efficiencies of over 97 percent enable us to ensure that entrepreneurs all over America can chase their dreams and, more importantly, accomplish them without any funding issues. To get a funding estimate, click here
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