Business credit shows lenders how credible you are to pay your debts on time. Your credit score helps them assess whether your business can receive financial credit or not. It is worth noting that building your business credit can help you set up your business for success. Therefore, having business credit is the lifeline for any business building platform. Strong business credit will help create a safety net for your business.
Darrell Jefferson has been championing business credit for all businesses.
Meet Darrell Jefferson
Mr. Darrell Jefferson is the owner and operator of RELL MILLIONS LLC. His humble beginnings exhibit his life as a celebrated and dedicated firefighter of Chicago, IL with aspirations to extract his dreams into reality in such a method, he would be capable of teaching others to follow his monumental example into their own success. His consulting firm assists small businesses with what he calls “An invasion of the financial industry”. When coaching by the usage of his method, he aims to assist other potential business owners with the acquisition of funding by leveraging their personal/business credit while also creating passive streams of income.
Darrell is working to establish lines of credit, secure loans, and grants with his clients. He has a vast network of people; however, individuals have been running away from it. This is due to a lack of credit education thereby instilling a phobia that once your credit is wrong, that means to avoid it. Then, clients try to go through other means. The truth is people don’t realize the formula of cash issues with investing. Cash is used to make credit; credit is used to produce more.
The following are four reasons why business credit is essential.
1. Easier Business Financing
Good business credit will help you when applying for business loans. Depending on your credit score, lenders can allow you to acquire money faster. Therefore, as a business owner, strive to keep your business credit score higher to improve your chances of getting approved for loans. Why you may ask? Because your lender will see you as capable of repaying the loan on time. You may also qualify for low-interest rates of financing.
2. Better Credit & Repayment Terms with Suppliers
A strong business credit score is good when dealing with banks, lenders, vendors, and suppliers. Suppliers will view you as trustworthy if you have a good credit score. Therefore, you stand a better chance of securing good repayment terms that align with your needs.
3. Protect Your Personal Credit Score
Do you want to protect your personal credit score? Maintain high business credit. Avoid huge expenses with your personal credit. This will increase your credit utilization ratio which can negatively impact your personal credit score.
4. Increases The Value of A Company
Did you know that business credit can increase the value of your company or business? Business credit is considered an asset when calculating the value of a business. Business credit can be transferred if a business is sold. Therefore, a future owner can benefit from the work of a previous owner.
Business credit is essential because it makes it easier for business financing, gets better credit and repayment terms with suppliers, protects your credit score, and increases the value of a company. Therefore, strive to maximize your credit score. And for more information on how to have a better credit score, click here. You can also connect to Darrell on Instagram.