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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

Find out more about Building Business Credit, download our free booklet on Building Business Credit for business owners. Click Here to Get Access.

 

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