Small Business Expert: Good Credit Matters
Written by Jenna Weiner
Credit can be key for entrepreneurs.
When it comes small businesses, having good credit can make all the difference. As one expert recently wrote, even those entrepreneurs with less-than-stellar credit scores can still do many things to help themselves.
Small business expert Rhonda Abrams recently wrote in USA Today that when starting out in small business, one's personal credit plays a large role in whether or not they are able to obtain a loan. Because of this, new businesses have a difficult time getting off the ground when they start out.
"Check your credit score. When you own a small business or are self-employed, your personal credit score and your business credit are entwined," Abrams writes. "Typically, you're going to have to give a personal guarantee for business loans, to your vendors, to sign a lease or buy a van. Business creditors are going to check your personal credit score. So pay attention!"
Abrams also suggests that checking your credit score once a year is a good idea. By law, a person may access his or her credit score once a year for free (though it is important to avoid credit score scams online).
There has been additional financial news for entrepreneurs recently, as Congress considers passage of a $30 billion-small business loan fund. The bill has seen much resistance from Republican leaders.
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