Can a Low Credit Score Affect My Success as an Entrepreneur?

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Your credit score is an extremely important measure of your credit worthiness. Along with the details included in your credit report, your credit score will be used by any lender, creditor or bank in determining whether or not to grant you a loan. As an entrepreneur, you may be even more concerned about your credit score, as it may fluctuate quite dramatically as you start your business. Entrepreneurs often need to borrow large amounts of money to get their business up and running.

One of the biggest influences on your credit score is how you manage your business expenses and monthly bills. If you’re starting up a new business and have taken out large loans, focus on making timely payments on your business rent and utility bills. Your personal credit rating will gradually become less important to lenders, because as your business takes shape it will take on its own credit score and report.

Business credit scores are formulated differently and using different number scales than personal credit scores, so it’s important to become familiar with the business credit scoring system so you know what to look for. You can request your business credit score without running the risk of damaging your score in any way. Stay on top of your business credit rating at all times. As your company grows, lenders and investors will look at how well you’re managing your business’ money before deciding whether to partner with you.

By analyzing your business credit report(s), you will be able to quickly recognize anything that might be dragging your score down. Some things to look for include: reporting errors, outdated information, and signs that someone has stolen your business information to use fraudulently.

If you start to see signs of your business credit score plummeting, you should act swiftly to reverse any damage that has been done. However, if you are busy running a start-up company, you likely don’t have a lot of time to devote to improving your credit score, especially if fraud is involved.

This is when it’s a good idea to seek professional help from a certified credit repair attorney near you. Avoid credit repair companies, as they often attempt to up-sell you on services you don’t need that won’t help you, and many of them have fraudulent practices.

Look for an experienced credit repair attorney with a high success rate helping clients with things like debt relief, bankruptcy and foreclosure defense. Veitengruber Law takes a holistic approach to NJ credit repair and debt negotiations so that you will have a team walking with you through the entire process. We care very much about your end result!

Like you, George Veitengruber, Esq. is also a business owner and understands the high value of building a strong business credit score. Our services are personalized so that your specific credit issues can be resolved in the most effective and efficient way possible. Initial phone or office consultations with our team are free. Give us a call (732)852-7295 to see how we can help you begin to rebuild your business credit, giving you the best chance at entrepreneurial success.

Image credit: Internet Association

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2 Responses to Can a Low Credit Score Affect My Success as an Entrepreneur?

  1. brandycavalli says:

    Reblogged this on The Social Mob LLC and commented:
    Here’s a topic we get a lot of advice requests for via email.

    Check out this informative article about how credit affects business for entrepreneurs.

    Good credit is always a plus!

  2. Pingback: Can I File for Bankruptcy if I’m Self-Employed? | Veitengruber Law

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