Building Business Credit

Is your company’s business credit holding you back from the financing you need? Business credit is an important but frustrating part of having your own business.

What Is Business Credit?

Business credit is a lot like personal credit. Having a strong business credit score will open financing doors for your business and having a low score will make those doors harder to walk through. Many traditional lenders evaluate a company’s financing potential on their business credit. Business credit is built over time; therefore, many small businesses or startup businesses have lower credit scores than traditional lenders prefer.

Not all vendors report payments to business credit agencies, so a solid method of building business credit is working with vendors that do report payments. If you do not know whether a vendor reports payment to business credit companies, just ask. It is not only important to pay on time but paying early will lead to the highest credit score. In order to pay vendors on time or early, having strong cash flow is essential.

Business Credit Services

Eagle Business Credit, an invoice factoring company, helps businesses of all sizes build their business credit. When looking to obtain traditional business financing, like a bank loan, a good business credit score is crucial. By selling your receivables at a discount to a factoring company, your business will have the working capital needed to build your business credit. When 44% to 90% of small businesses report financing shortfalls due to insufficient credit histories and collateral, invoice factoring can provide the funding necessary to bridge that gap in the long run. Business invoice factoring companies can finance companies with poor business credit.

Business Credit Facts

20% of small business loans area denied due to business credit scores
Nearly half of small businesses use personal credit cards to finance their company
Only 46% of businesses received the full amount of financing sought in 2017
87% of businesses relied on personal credit scores for financing in 2017
50% of businesses relied on business credit scores for financing in 2017

Eagle Business Credit Funding

Poor credit—whether personal or business—will affect your access to business financing. Invoice factoring companies do not require a long time in business, a perfect credit score, or a long credit history. Selling your receivables at a discount provides your business the money needed to make on time or even early payments to your suppliers. When traditional lenders reject your application on the basis of business credit, we are here for your business funding needs.

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