Business credit can significantly impact your company’s financial status, growth, and success in many different ways. Anyone can check your business credit through any of the credit bureaus. For instance, banks, lenders, suppliers, and vendors can review your business credit to see whether you qualify for business loans or other financing solutions with friendly terms, higher credit limits, or lower interest rates. Insurers may determine premiums and policy options based partly on the business credit. Also, investors and other businesses will probably look at the business credit before partnering with or contracting your business.
Generally speaking, healthy business credit earns you favor with financiers, insurers, B2B customers, and potential investors and business partners.
To most entrepreneurs, business credit means access to business loans and bargaining power over loan terms. But in addition to SMB loans, strong business credit opens up countless other handy credit-based financing options, such as: