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BUSINESS CREDIT SCORES – KNOWING WHAT TO DO WITH THEM

There are many reasons why your business credit score is important. This one number can make or break your

chances of getting a loan taking up any business opportunity that has presented itself to you. Understanding what

determines this number and how it is used by lender and credit agencies is in the good interests of your enterprise.

Let us look into it further..

Lenders and credit providers use your business credit score to determine whether or not your loan application is

worthy of being considered. They use this number as an indication of how much of a risk you pose of defaulting on

your payments. Higher credit scores will allow you to enjoy much lower interest rates and more favourable terms on

the loan. Lower credit scores might result in your application being rejected outright. However there are agencies

that offer credit to applicants with bad credit scores but these are generally provided at higher rates of interest. The

terms of the loan will also be less favourable.

As a business house, you should always obtain a credit report, preferably every year, to ensure and address any false

information forming a part of it. This practice will also allow you to correct any bad payments that have been

affecting your credit score in time before the damage goes out of hand. This practice will help you assess and analyse

your financial situation.

There are many agencies that offer business credit scores and reports online. You can always register yourself with

them to know the ratings of your enterprise.