Small Business Tax Center
Small Business Ideas, Grants &
Plans to Start & Run a Business:

Small Business Grants
CyberSchmooz
Network in Cyberschmooz Community Ask Questions Questions and Answers Share Tips Small Business Ideas List Your Business Business Advice from Idea Cafe Experts Coffee Talk with Experts Starting A Business Business Plan Biz Planning | Sample Plans Small Business Ideas Idea Name Your Biz Name Plan Your Biz Plan Financing $ Starting a Business Do It! Running your Business Marketing Tips Promotional Merchandise Marketing Tips Marketing | Sales | Customers Human Resources HR | Employees | Contractors Legal Forms & Tax Information Legal | Biz Forms Managing a Business Managing | Operations
Financing Resources Financing Your Business E Commerce & Webhosting eCommerce Take Out Info Trade Publications FREE Trade Publications Business Books Biz Books Your Own Business Small Business News Small Biz News Gen X Biz Gen X Biz Work at Home Work @ Home Business Information The Fridge - Biz Info on Ice Destress Send Awards Send Awards & Greetings Yoga At Your Desk Yoga @ Your Desk Fun Guide Guide to Find FUN Online About Idea Cafe Press Idea Cafe has received Idea Cafe in the News Idea Cafe's Kudos Kudos for Idea Cafe Advertise on Idea Cafe Advertise on Idea Cafe Privacy Policy Privacy Policy Contact Idea Cafe Contact Idea Cafe Link to Idea Cafe Link to/from Idea Cafe Join Idea Cafe
Search Idea Cafe Site Directory Site Map Online directory to business resources Biz Web Guide



Expert Answers to Biz Questions

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

color business bar

Can Bad Credit Limit Your Business Prospects?

 

There are nearly 28 million small businesses in America, but don’t be fooled; entrepreneurship in the US is at an all-time low – and it could be due to bad credit.

Bad credit definitely has the potential to limit your business prospects. There are lots of different ways that you can finance your business – but most of these methods rely on good credit. However, it isn’t all bad news; the impact of your credit score will depend on the type of business owner that you are.

Here is how bad credit can limit your business prospects, depending on the kind of business that you run.

Will your credit score be checked?

If you are borrowing money your credit score will always be checked, whether you are taking out a small business loan or buying a laptop. However how your credit score is checked will be different, depending on if you are seeking credit as a limited company, a sole trader or a partnership. If you are a sole trader it is very likely that your personal credit score will be analyzed along with your business credit history.

If you are part of a business partnership the situation is very similar to that of a sole trader – except both partners will have their credit scores checked. This can be useful If one partner has a good credit score, but if both partners have low credit scores this could limit your business prospects. The final option is a limited company, and this will have a business credit score of its own. Most financing companies will prioritize the business credit over your personal credit, but they still have the right to check your personal credit score too.

So what does this mean for you?

Basically, poor credit can limit your business prospects no matter what kind of business you run, but it is less of a problem if you work for a limited company or a partnership. If you have bad credit due to debt, one step that you can consider taking is taking out a personal loan to consolidate your debts. This could lower your monthly interest fees, which will make it much easier for you to clear your debt. After all, America currently has over $1 trillion in credit card debt, and high-interest rates are partially to blame for this debt.

A bad credit score may limit your business prospects, but you can still grow as a company if you consolidate your debts and make a clear effort to pay them off.

Google      

Small Business Tax CenterIdea Cafe HomeSign UpBiz Grant CenterCyberSchmoozCoffee Talk with ExpertsPeople in Biz ProfilesStarting Your BizBiz PlanningRunning Your BizFREE Trade PublicationsMarketingFinancing Your BizHuman ResourcesLegal & Biz FormsManaging Your BizeCommerceYou and Your BizGen XWork@HomeThe FridgeDe-StressSend an AwardSend an eGreetingYoga @ Your DeskWeb GuideIdea Cafe in the NewsAbout Idea CafeAdvertise on Idea CafeContact UsPrivacy PolicySite MapSmall Biz News

Copyright 1995-2018, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc.

DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages.

TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.