What is a business credit score

What is a business credit score & how to start improving your business credit

Lesson Details:
April 27, 2020

Video Transcription: This might be said that this might sound like a simple question but what is the business credit score this video is brought to you by Appy Pie’s Academy we know we're all familiar with our personal credit scores right that's the that's the file that's kept on us it's got a FICO score attached to it you know we all we all have our three number score that tells us whether or not we're a good person but there's also business credit scores that you can have in business credit reports so as you start to play a bigger game in your business this is something you want to start to look into what are the big reasons is is you want your business to be credit worthy without you so there's all those personal guarantees that go back and forth between business you know a lot of times where you get a line of credit you know you're gonna have to sign for it personally however once your business starts to become credit worthy on its own then that's when you can start to get out of all those personal guarantees so let's say Donald Trump you think Donald Trump signs his name on the dotted line when he starts a new development project no he does not that's what Donald Trump's able to file bankruptcy so many times and still be so wealthy right he's kept his business and personal farad very separate so once you start to develop to the point where your business is big enough and generating enough income that it can stand on its own you want to get a business credit report started and you can go to Experian you can ask them to start that for you most I should say most there are many many places that will report to a business credit reporting agency and you want to find you want to do business with those people because not everybody does you know we know on the personal side if we get a credit card it's just it's gonna report it they all do right and that's not the case on the business side so if you if you want to get this credit report going you're gonna want to start doing business with vendors for report on the business side as well because again there's a big advantages as you grow and grow and grow that you personally are going to be able to step out of that that business is going to stand on its own and your personal assets aren't going to be tied to it anymore so there's a lot of big advantages to really being intentional about getting a business credit report and business credit score started. 

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