If you are having your own business, you may have surely borrowed money from someone at some point in time. You can borrow the money for launching the operations, making up the losses and expand the offerings. Regardless, of the reason for what you are taking the money, you require money from time to time. Borrowing the money is not so important, but the important fact is that how the borrowing money can affect your business in the later times.
For some individuals, the borrowing money history can largely affect the credit score and will affect the loan approval in the later times. It is seen that borrowing money can largely affect your credit score and can later one if you are approving the loan, there can be various problems. If you find that your credit score value has been lowered down due to the money borrowing, you can take help from the credit repair attorney to fix the score.
Factors affecting the business credit-
There are various factors that will affect the business credit. It is estimated that half of the businesses fail in the coming two years of span. Thus, the entrepreneurs can do anything in the urge for the business prosperity, beginning with the business credit. The following items are factors of business credit-
- The lines of business credit- it is also called the credit inquiries. The nine-month history of the money borrowing for the business is consideration for the lenders.
- New lines of utilization and credit- have you opened any company lines of credit in the last 6 months, if so, how may such lines you are using? The money lenders will search for the new credit cards, accounts, loans, leases and many more. This will help you to choose how much you have borrowed recently.
- Collection or tax liens- some of the credit items are incriminating than the credit history collections. The money lenders can access the likelihood of the business to again repay the loan.
- On-time payment history- it is similar in making the personal credit. These most of the factors are same in the personal and the business credit.
When business credit extend the score
When the business is looking for the loan, the approval is not only limited to the single score or the credit profile. Some of the other factors like the active years, bank scores, industry and the annual income are some of the important factors to approve the loan.
When you realize that your credit score is affecting the business, you can take help from the credit repair companies. These organizations help you in various ways. The staffs provide the free credit analysis, they provide customize plan in repairing the credit score in terms of debt settlement, charge-offs, bankruptcy, re-establishing the credit, late payments, credit coaching and so on. Hence, if you have any doubt to know how to “repair my credit”; you can take help from professional.