Merchant Funding and Your Business Credit Score 

Your business credit score or business credit crating is something you can’t overlook. However, a large number of businesses don’t think about that. They usually focus more on their personal credit score. This article will tell you how important your business credit score it and how it can help you get approved for merchant funding without challenges.

Business Credit Score

It’s interesting to note that over half of small businesses haven’t built a business credit score. In fact, your business credit score can make it impossible for you to get a business loan.

According to the US Small Business Administration (SBA), lenders consider your credit score the reflection of how well you handle money. As many lenders think, a low credit score indicates the lack of proper skills to manage finances. However, having poor credit doesn’t mean you can’t improve it and qualify for a small business loan.

Business credit reports are based on a 0 to 100 numbering system, as the SBA notes. Factors associated with a business credit profile include how often you pay your bills, credit history, and available credit.

Dun & Bradstreet, Experian, and Equifax, the 3 major business credit bureaus, use different algorithms to determine your score. Though each of these bureaus calculates scores based on different factors, a scale featuring 0 – 100 points is being applied. The majority of lenders consider a score of 75 as “good.” If you have less than that, you may have a difficult time finding a business loan.

Applying for Merchant Funding? What’s Your Business Credit Score?

A good business credit score is crucial to both emerging, growing, and even established businesses. Lenders of all sizes take into account your business credit score when determining whether you’re eligible for a business loan or not. Your business credit helps them decide whether your business is a good investment for them or not.

If you’re in need of merchant funding but have poor credit, turn to a reputable alternative online lender. With a respectable business funding provider, you can get the necessary financing without difficulty. This refers both to traditional and high risk businesses.

If you have a high credit rating, this may imply you’ve taken out loans in the past and paid them back in a timely fashion (or even ahead of schedule). Also, this indicates that you haven’t overextended your business with other loans that might not be easy to pay back.

Your business credit score doesn’t just affect the amount or the rate of your loan. It can also keep you away from falling into tricky situations where you might end up with less than ideal terms for your business.


Author Bio: Business Funding expert, Nathan Hale, founded First American Merchant with his eyes set on helping the backbone of our country, small business owners. His passions include writing/producing music, and travel. First American Merchant is America’s Best merchant funding company, serving both traditional and high-risk Businesses.