Why Would You Need Business Credit?
Building your business credit will improve your business with the following:
- You will save time and money for your business
- Meet any current lending needs
- Prepare for any future lending needs
- Have cash in your business when it's needed
- Ability to extend your cash flow
- Lower your interest rates
- Build credibility for your business
The biggest advantage of having a good business credit profile is saving money. By obtaining a more favorable credit score you will lower the interest you pay on loans and leases. For example:
EXAMPLE
10 year payback |
Good Credit Score |
Average or No Credit Score |
Loan Amount |
$100,000 |
$100,000 |
Length of Loan |
10 years |
10 years |
Interest Rate |
7.5% |
10.5% |
Payment |
$1,187.02 |
$1,349.35 |
Total Interest Paid |
$42,441.99 |
$61,921.99 |
Total Savings For Having Good Credit $19,480
EXAMPLE
5 year payback |
Good Credit Score |
Average or No Credit Score |
Loan Amount |
$100,000 |
$100,000 |
Length of Loan |
5 years |
5 years |
Interest Rate |
7.5% |
10.5% |
Payment |
$2,003.79 |
$2,149.39 |
Total Interest Paid |
$20,227.75 |
$28,963.40 |
Total Savings For Having Good Credit $8,685.60
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