Business credit is your business’s ability to borrow. Your business credit score influences your access to credit products such as credit cards and loans, giving credit agencies, lenders, vendors and suppliers an indicator of how you handle your debts and your likelihood of paying them on time. Building your business credit can pay off: The lending products available to small businesses include lines of credit, business credit cards, term loans, and letters of credit.
At some point you will want to build business credit to secure funding for your business needs. It enables you to obtain the capital you need to expand, cover day to day expenses, purchase inventory, hire additional staff and allows you to conserve the cash on hand to cover your cost of doing business. By taking the necessary steps to build business credit the more financial opportunities your business will have.
