We have talked about how your personal credit rating works in a previous post, now we look at how your personal credit rating can impact, or hurt your business.
We all need third party products to make our business work. Sometimes these are time saving or convenience products, sometimes they are 100% key to our functionality as a professional and respected company.
Let’s use a simple example. You are at an exhibition or working away from your base, you want the ability to take payments on the move. OK, there are loads of solutions to this which can really help.
However, the first thing any of these providers will do is want to know that they are not taking on a risk, so they will look for a business credit search and personal credit rating. If one of these is poor then the chances are they will be nervous about working with you.
It comes down to the old rationale of ‘if you cant run your own finances, could you run your business finances?’
It isn’t just finance that is decided by personal credit rating, it is the associated services, things like –
- Card Acceptance (merchant acquiring)
- Premises Lease
- Direct Debit Schemes
- Supplier Payment Terms
This is not scaremongering, we simply ask that you be aware of what could impact and seek input to change what needs changing. You can put a credit rating right.
This is a common message we try and spread about most business and finance topics, credit rating is no different.
If you think your personal credit rating is below par, or have done a search and found that it is, then contact us and we will talk you through the report and see what alternative options are available.
Personal credit ratings will, in our opinion, continue to be a major deciding factor in many small business transactions.
If you have any comments about this article then please add them above, or contact us via the website.
By Lime Consultancy