Your Business Credit Scores Matter, and Here’s Why

 In Blog, Business Insurance
Your business credit score measures your company’s creditworthiness. You don’t have to be on top of the status of your credit score, but neglecting it completely can close a lot of doors for your business.

The Importance of Business Credit Scores

 A credit score is a numerical expression based on a level analysis of a person’s credit files to represent the creditworthiness of an individual. A credit score is primarily based on a credit report information typically sourced from credit bureaus.
Source: Wikipedia
Keeping a business up and running requires a lot of hard work, and with everything that goes on on a daily basis, it’s easy to ignore the importance of your business credit score. However, omitting it can do you more damage than good. Being mindful of your business’s financial health is critical to keeping things running smoothly.

It’s a Way to Protect Your Personal Credit

A lot of people use their personal credit to obtain financing for their business. If for whatever reason you make a late payment on your business loan, your personal credit will be the one to take a hit. By building a good business credit history, you’ll keep your personal credit safe from harm.

Saves You Some Major Bucks on Financing

A good business credit score will open a lot of doors for you in terms of financing. These options are usually lower in cost for businesses than those that rely on personal credit scores. Keeping your business credit clean can save you a lot of money.

Bad Business Credit Scores Can Take a Toll On Your BusinessBusinesses Check Up On You Using Your Credit Scores

Unlike personal credit scores, business credit scores are public record. Anyone that’s interested in your business’s financial health can look up your score. Let’s say you’re looking for a business partner. If your potential partner realizes you have bad credit scores, when you offer them a deal, they might look the other way.

It’s a Solution to Cash Flow Problems

Cash flow is always a concern for businesses. If you ever face a rough financial season, having a good credit score will give you access to many financing options to get you back on your feet.

Saves Your Business Money On Insurance Premium

If you’re applying for business insurance, insurance companies will check your business credit before deciding whether to approve you or not. Keeping a good credit history will help you save money on insurance premiums.

Take ownership of your credit score today, and if you’re looking for the right business insurance in Colorado, get in touch with one of our agents. At AAI Central Agency, our job is to make finding the right insurance for your business easy.

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