Becoming an entrepreneur takes more than just opening an LLC. The pivot requires a business plan, marketing strategy, whether manufacturers will be involved, and, most importantly, financing. However, when it comes to, the challenge often hinges on one key factor—the business credit score. Building a robust credit score for your business can unlock more opportunities for growth, better credit terms and a stronger financial foundation.
Jones started with Wells Fargo in 2000, working at a branch. She worked her way to a field support role in the organization’s small business lending department. Here, she learned about underwriting and how business credit works. She then pivoted to leading all of the small business for Texas, which led her to her current role. She’s in a strategic position now, guiding the diverse customer segments of the team.
Business Valuation: If you’re planning to sell your business or attract investors, a strong credit score can increase your business’s valuation.While your personal credit score is tied to your social security number, a business credit score is linked to your business’s tax identification number . There are several key differences between credit accounts:
Information disclosure: Business credit reports are often public, meaning anyone can check your business score if they’re considering doing business with you. In contrast, personal credit scores are private.Separate finances: Don’t blur the lines between personal and business finances. Keep separate bank accounts and credit cards for your business.
Open a business bank account: Use this account to pay for all business transactions to keep a clear record of business expenses.