Most financial institutions will look at your credit history when you apply for a loan. It doesn’t matter whether you’re going about it as an individual or as a business.
The credit report provides critical information to the lenders. They will look at your repayment history to determine whether you are a good or bad risk. Poor repayment records show that giving you financing may not be a good idea.
But, it does not mean that the lenders will turn you down. Some offer bad credit loans, with one condition. You will attract higher interest rates than what you would pay with a good credit score. The extra amount provides some kind of protection to the creditors.
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Financial advisors will tell you to separate your personal and business credit with good reason. Read on to understand more.
Business and Personal Credit; What You Need to Know
A personal credit report looks at your financial history. As we have stated, lenders use such information to determine your creditworthiness.
But that’s not all. A poor credit score can impact your life in a profound way. You could miss out on job opportunities. Aside from that, some tenants will not lease property to people with poor credit scores.
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Business credit reports focus on the business and have nothing to do with your personal credit. The credit reference bureau attaches the personal credit score to your social security number. Business credit uses the employee identification number (EIN).
A good score avails the same benefits you would get as an individual but to your business. Such include lines of credit, business loans, and trade credit from suppliers and lenders.
So what happens in the case that your personal credit is not good but you need financing for your business? Well, remember our earlier point on separating your personal and business credit?
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The credit check will not touch your personal credit history. They can only seek information on your business credit.
Now here is some good news. It is possible to rebuild your credit score with the help of credit repair professionals. A poor credit score does not always mean that you are not good at making repayments.
Sometimes an error in the report can hurt your score. The reporting agencies may also fail to remove a collection account from the credit report Identifying and fixing such errors can be a tedious process.
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If you do not have the expertise, you may miss critical information. Please consult credit repair professionals on what to do. They can also offer monitoring services to ensure your reports are as they should be.
At this point, you have a pretty good idea of why good credit will benefit your business. Do take the time to look at your credit reports at least once every quarter at a minimum. If you can do it every month, the better.
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Always aim to keep the score within the 80-100 range. The closer to 100, the better. For personal credit, anything ranging from 800 and above is excellent.
We can summarize the salient points of having good business credit scores as follows.
Access to Loans at Competitive Rates
Lenders like to be sure that they will get back their money. But, your credit score shows that you do not pay suppliers or vendors on time.
Some have even sent debt collectors to you, so there is a collection account on your report.. Don’t fret too much on this, as we said, credit repair agencies can remove a paid collection account from the credit report.
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Now, the lenders have two options. The first is to deny your request for funding. The other is to provide a bad credit loan to you. The interest rates may make the loan too expensive for your small business.
Good Credit Improves Chances of Higher Loan Amounts
Bad credit loans can avail funding for your business. But, the lenders may not be willing to give you a high loan amount. They would not be willing to place themselves at risk of not getting back their money.
Even if they charge high interest, it is not an immediate assurance that you will pay. Good credit is a sign of responsible money management. The institutions will be more willing to negotiate higher amounts with you.
And, they will be more agreeable to longer payment terms. It allows you to manage repayments in a more comfortable manner, depending on the business capabilities.
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You Can Negotiate Better Terms with Suppliers
Suppliers are careful about the type of businesses they deal with. They will not avail credit lines to any entrepreneur or company with a poor credit score. Yet, it can be very difficult for a small business to operate on a cash-only basis.
Good credit scores are a sign of financial stability, and good money management. Remember, suppliers will run a credit check before entering into negotiations with you.
Even without a business credit score, they will need to see that you have a good personal credit history.
Good Credit Allows For Business Growth
You do not start a business without growth projections. And, this is only possible if you have sources of financing when you need them. Business loans can provide cash for startups or small business owners. A good credit score is a sure way to achieve scalability.
Good credit scores are critical for anyone who is operating a business. The good news is that you can separate your personal and business reports. Lenders and suppliers can access business credit reports to check your creditworthiness.
Poor credit scores can make it difficult for you to get financing. Even when you do, be ready for high-interest rates, lower amounts, and shorter repayment timelines. Keep a close eye on your credit scores.
You can get the reports from using online resources like the Experian business credit report. Other sources are Dun and Bradstreet Credit Signal and Nav Business Credit Report. Do note, some platforms are free while you must pay on others.
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The other alternative is to get a credit repair company to monitor the reports for you. If you notice any errors or inconsistencies, credit repair professionals can help rectify such.
Passionate news enthusiast with a flair for words. Our Editorial Team author brings you the latest updates, in-depth analysis, and engaging stories. Stay informed with their well-researched articles.
Gerber and Perrigo Face New Lawsuit Over ‘Store-Brand’ Infant Formula Pricing; All Pending Toxic Baby Food Cases Consolidated into New Class Action MDL
Infant formula makers Gerber and Perrigo have been hit with a class-action lawsuit, which accuses the companies of artificially creating a shortage and jacking up prices for “store-brand” formula sold at Walmart, Walgreens, and other retailers.
The lawsuit was filed on Monday in federal court in Alexandria, Virginia. It accuses Perrigo of violating antitrust laws by collaborating with Gerber to prevent competitors from entering the market for store-brand formula.
Perrigo, one of the nation’s largest suppliers of store-brand formula, sells its products under retail labels at prices lower than similar branded products. However, the lawsuit alleges that Gerber, by granting Perrigo the first right of refusal to Gerber’s excess formula supply, which could have been sold to other competitors, is engaging in practices that stifle competition.
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The lawsuit claims that through this arrangement, Gerber agreed to keep its excess formula out of the store-brand market, thereby gaining a share of Perrigo’s profits. The lawsuit was filed by four residents of California, Illinois, Michigan, and Pennsylvania, who will represent millions of customers who have purchased store-brand baby formula. The lawsuit does not name formula retailers as defendants. It asks the court to intervene and end the anticompetitive deals between Perrigo and Gerber and seeks more than $5 million in monetary damages.
This lawsuit is similar to another case filed in Brooklyn federal court by a potential store-brand competitor, P&L Development. Gerber and Perrigo requested the dismissal of that case, which was denied by the judge in February. The companies involved in the lawsuit claimed they compete fairly with other infant formula manufacturers, including those of store-brand formulas. The lawsuit also cited the squeezing out of P&L Development from the store-brand market, which has led to higher prices.
Gerber is also facing numerous lawsuits accusing its brands of baby food of containing dangerously high levels of toxic heavy metals, such as lead, arsenic, and mercury. These heavy metals are extremely toxic, even for adults, and can have catastrophic consequences on developing children, leading to health complications and neurological damage. Conditions such as ADHD and autism may be linked to consuming these toxic baby foods.
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On April 11, 2024, all the lawsuits pertaining to toxic baby foods, which had been filed at different times in various courts, were consolidated into a new class action MDL in the Northern District of California and assigned to Judge Jacqueline Scott Corley. Besides Gerber, other baby food manufacturers like Beech-Nut and Campbell Soup Co. have also been named as defendants.
The legal wrangling between the crypto sector and the SEC, or the Securities and Exchange Commission, is getting uglier, with ConsenSys, a major protagonist of the Ethereum Blockchain, filing a lawsuit against the regulatory body in a Texas federal court. This legal action seeks an intervention to ward off a looming SEC lawsuit against the company regarding features of its popular MetaMask wallet. The lawsuit also seeks the court’s help in deciding once and for all the vexed question of whether Ethereum’s digital token, Ether, is not a security. The legal uncertainty hangs heavily on the crypto sector and puts a question mark on its very existence.
In an exhaustive 34-page legal filing, ConsenSys states that the SEC’s endeavor to exert control over Ethereum is both illegal and a threat to blockchain technology.
The complaint states,
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“The SEC’s unlawful seizure of authority over ETH would spell disaster for the Ethereum network, and for ConsenSys. Every holder of ETH, including ConsenSys, would fear violating the securities laws if he or she were to transfer ETH on the network. This would bring the use of the Ethereum blockchain in the United States to a halt, crippling one of the internet’s greatest innovations.”
The lawsuit also alleges that SEC Chairman Gary Gensler has embarked on an aggressive enforcement policy directed at the big players in the crypto sector like Coinbase and Uniswap. The lawsuit particularly points out a campaign that involved a deluge of subpoenas asking firms and developers for documents related to their dealings with the nonprofit Ethereum Foundation, which supports the blockchain’s development.
The crypto sector is up in arms against Gensler’s tactics and has contended that the SEC has never provided clear rules meant for the distinct features of blockchain technology. However, Gensler negates this argument, saying that the existing securities laws are clear and sufficient, and that the crypto industry refuses to comply with them.
Gensler’s actions are full of contradictions since, in the past, the SEC had maintained that blockchain’s tokens, like Bitcoin, are not securities and hence beyond its purview. A senior official in 2018 had stated that Ethereum has reached a state where it is adequately decentralized, and further, the agency also gave the green signal for the launch of Ethereum futures trading—an implicit acknowledgement that Ether is a commodity. However, at present, Gensler is using a recent feature of Ethereum, known as staking, as grounds for the recent legal campaign.
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The lawsuit was filed after the SEC issued a Wells Notice, which is akin to a formal letter warning that the agency intends to sue a firm and could lead to a settlement later. The SEC charged ConsenSys that MetaMask was operating as an unlicensed broker-dealer. MetaMask offered users a means to stake Ethereum on their behalf. Staking was a feature introduced in September 2022 on the Blockchain as a replacement for the energy-intensive mining process. The process involves a system of validators who pledge collateral to become trusted validators.
The SEC objects to the process of staking, which has changed Ethereum from a commodity into a security. ConsenSys founder Joe Lubin has called this account of the SEC “preposterous”.
Lubin said,
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“The act of staking is really just posting a security bond so you can get paid to contribute labor and resources to help operate the Ethereum protocol. Now they’re trying to turn that into some sort of investment contract.”
Lubin also stated that the SEC’s actions will lead to a halt in the growth of the crypto sector and blockchain technology as a whole. Lubin feels that the SEC seeks to block pending applications by companies to launch spot ETFs for Ethereum, following the huge popularity of Bitcoin ETFs. The SEC is in fact trying to regulate a technology on its merits and it will only stifle innovation.
Caterina Fake is a renowned American entrepreneur and co-founder of several groundbreaking ventures, including Flickr and Hunch. Born on June 13, 1969, in Pittsburgh, Pennsylvania, Fake has been a driving force in reshaping the digital landscape through her innovative ideas and entrepreneurial acumen.
From her early days in Pittsburgh to her rise in Silicon Valley, Caterina Fake’s career has been marked by a relentless pursuit of excellence. Co-founding platforms like Flickr and Hunch, she has revolutionized how we connect and share information online. Her visionary leadership and creative brilliance have cemented her status as a trailblazer in the tech industry.
Caterina Fake Net Worth
As of 2024, according to TheRichest, Caterina Fake’s net worth stands at an impressive $25 million. Her entrepreneurial ventures, including Flickr and Hunch, have contributed significantly to her financial success. With a keen eye for emerging trends and a knack for innovation, Fake continues to inspire aspiring entrepreneurs around the world.
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Caterina Fake Age
Currently 54 years old, Caterina Fake was born on June 13, 1969. Despite her age, she remains a dynamic force in the business world, constantly pushing the boundaries of what’s possible in technology and entrepreneurship.
Caterina Fake Family: Husband and Children
Caterina Fake was previously married to Stewart Butterfield, with whom she co-founded Flickr. They tied the knot in 2001 but announced their split in 2007. They share one child, Mint Butterfield, who has recently been reported missing. Caterina Fake is currently in a relationship with Jaiku co-founder Jyri Engeström.
Caterina Fake Height and Weight
While specific details about Caterina Fake’s height and weight are not readily available, her stature in the tech industry is undeniable. Standing tall as a visionary leader and innovator, Fake’s impact transcends physical measurements, leaving an enduring legacy in the digital sphere.
