Biggest Advantage of Having Business Credit
The biggest advantage of having a good business credit is saving money. By improving your credit score you will lower the interest you pay on loans and leases.
For example:
| Average Credit | Good Credit | |
|---|---|---|
|
Loan Amount |
$50,000 |
$50,000 |
|
Length of Loan |
10 Years |
10 Years |
|
Interest |
12% |
8% |
|
Payment |
$717.35 |
$606.64 |
|
Total Paid |
$86,082 |
$72,796 |
Savings for having good credit = $13,285
The Goal is to:
- Establish good credit with the major business credit bureaus.
- Develop the all-important Business Credit using your Business Tax ID number instead of your Social Security Number.
- Obtain a Business Credit Score for your business. Without a business credit score, your business will never qualify for credit.
- Obtain open lines of credit for your business without personal credit checks and personal guarantees.
- Improves your businesses ability to obtain vehicle leases, lines of credit, or loans under the company’s name.
- To keep your business out of the dreaded high-risk, no-credit status.
- Save money by bettering your credit score and lowering interest rates.
Remember:
To establish the best credit score (75 or better), you need to do the following:
- Find reporting companies and consistantly purchase from them over a 4 to 6 month period.
- Obtain 5 or more positive trade references.
- Once you obtain your gaol, continue to purchase from them to keep your score current and strong.
For more information, visit Ace Management Group and download the Business Credit brochure.