A crucial growth tool for most entrepreneurs, including black small business owners, is good business credit.
Also called commercial credit, good business credit can determine your trustworthiness if you’re seeking a loan to expand. It can show how well an entrepreneur manages money. Business credit can help pinpoint if your firm is a feasible partner for an investor, a bank or a supplier to work with.
Yet, a survey by business credit score firm Nav showed that 45% of small business owners didn’t know they had a business credit score. Some 72% didn’t know how to find information on their business credit score and 82% didn’t know how to interpret their score. The report also revealed that one out of five of the small businesses that were denied credit did not know why.
Additionally, insufficient or delayed financing is the second most common reason for business failure, according to the U.S. Small Business Administration.
Small business online lender Biz2Credit and SmallBusinessTrends is offering a free webinar on “How to Improve Your Business Credit – And Get a Better Loan” on Wednesday, December 6th. It will offer various tips business owners can use to obtain financing.
The webinar will cover several topics. They will include two most common misconceptions about getting business credit; why personal credit is as important as business credit, the seven primary types of small business credit and other topics Small Business Trends Founder and CEO Anita Campbell and Co-Founder and CEO Rohit Arora of Biz2Credit will be the presenters.
The SBA reports that business owners are often not aware of how significant managing business credit is to their overall success. Yet, the SBA contends that small business owners agree actively managing business credit can help them secure more financing at better terms and obtain the funding when they need it.