Business

How Better Credit Score Helps You to Succeed in Small Business

Published

2 years ago

January 5, 2022

How Better Credit Score Helps You to Succeed in Small Business

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.

Financial advisors will tell you to separate your personal and business credit with good reason. Read on to understand more.

Also Read: 6 Outstanding Advantages of using Credit Card

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.

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?

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.

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.

Also Read: Everything to know about Citibank Credit card, Benefits, and features

Why Good Credit is Critical For Your Business

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.

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.

1. 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.

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.

2. 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.

3. 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.

4. 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.

Final Thoughts

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.

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.

Business

Sundar Pichai Net Worth 2024: How Much is the CEO of Google Worth?

Published

15 hours ago

May 1, 2024

Vishnu Chaudhary

Sundar Pichai Net Worth 2024: How Much is the CEO of Google Worth?

Who is Sundar Pichai?

Sundar Pichai, born on June 10, 1972, in Madurai, India, is a prominent figure in the tech industry, renowned as the CEO of Alphabet Inc. and its subsidiary Google LLC. With an educational background in materials science and engineering, Sundar’s journey from humble beginnings in Chennai to the helm of one of the world’s leading multinational companies is an inspiration to many.

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Sundar Pichai Career

Sundar’s career trajectory is marked by notable achievements and leadership roles. Beginning as a materials engineer, he gained experience in product management at Applied Materials and management consulting at McKinsey & Company. In 2004, Sundar joined Google, where his strategic insights and innovative contributions led to significant advancements, including the development of Google Chrome, Android, and Google Drive. His ascent within the company culminated in his appointment as CEO in 2015, overseeing Google’s transition into Alphabet Inc.

Sundar Pichai’s Net Worth

As of 2024, Sundar Pichai’s net worth is estimated to exceed $1.66 Billion, primarily attributed to his role as CEO of Alphabet Inc. and his ownership of approximately 520,668 shares of Alphabet Inc. stock. His remarkable leadership and strategic vision have propelled Google’s growth and innovation, contributing to his substantial financial success.

Sundar Pichai Age

As of 2023, Sundar Pichai is 50 years old, having been born on June 10, 1972.

Sundar Pichai Family: Wife and Children

Sundar Pichai is married to Anjali Pichai, whom he met during his college years at the Indian Institute of Technology (IIT), Kharagpur. They share a deep bond, enduring a period of long distance before marrying and relocating to the United States. Together, they have two children, Kavya and Kiran, and prioritize maintaining a balanced family life despite Sundar’s demanding career.

Sundar Pichai Height and Weight

Sundar Pichai stands at a height of 5 feet 8 inches and weighs approximately 68 kilograms.

Also Read: Eric Eisner Net Worth 2024: How Much is the Film Producer Worth?

Business

Important Ripple V. SEC Lawsuit Update: Parties Cross Swords Over A Key Witness Testimony

Published

1 day ago

April 30, 2024

Manoj Nair

The legal wrangling between Ripple and the US Securities and Exchange Commission (SEC) is becoming increasingly acrimonious. Despite the crypto sector eagerly awaiting an outcome, the case grows more complicated with each passing day.

In a recent move, the SEC filed its opposition to Ripple’s motion to strike new expert materials, including a testimony known as the ‘Fox Declaration,’ which Ripple claimed represents unsolicited expert opinion.

However, the SEC countered this argument, stating that it was a common process akin to standard summary evidence in support of calculations for disgorgement.

The SEC insisted, ‘It’s not an expert report, does not rely on specialized experience, and does not render any opinions at all, let alone an “expert” one. Nor does it present the testimony of a percipient witness. Rather, it applies basic arithmetic to Ripple’s financial records to streamline the presentation of evidence to Judge Torres… The court should deny Ripple’s motion.’

The SEC also said that the ‘Fox Declaration’ consists of information derived from Ripple’s own documents, including tax returns and financial statements, which can be useful for determining the case’s outcome. The SEC also reminded that this very argument was already struck down by Federal Judge Torres earlier.

XRP Lawsuit: Whales Shift 74M XRP Amid Approaching SEC Deadline, What’s Next?

Just before the SEC’s deadline in the Ripple lawsuit, there was significant whale activity, with transactions affecting over 74 million XRP, leading to increased speculation about the motive behind this move. However, XRP prices have taken a hit, more due to a global crypto market sell-off and significant whale movements. Later in the day, the SEC is expected to file its reply in the Ripple case.

It was an eventful day, with major crypto assets facing the heat and values tanking. XRP prices have dropped by 4%, but major whale activity involving significant transfers of XRP, totaling $15.92 million to Bitstamp by unidentified whales, has experts talking and wondering about the real motive behind this action. Coupled with the uncertainties around the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), the future of the crypto sector hangs in balance with the final result of this legal wrangling.

Also Read: Philips Settles for $1.1 Billion Over Sleep Apnea Device Recall Linked to Cancer Risks

Business

Philips Settles for $1.1 Billion Over Sleep Apnea Device Recall Linked to Cancer Risks

Published

1 day ago

April 30, 2024

Manoj Nair

Dutch conglomerate Philips has concluded a $1.1 billion deal to resolve claims in the United States related to the recall of more than 1 million breathing machines. These devices, also known as sleep apnea devices, were recalled in 2021 due to concerns that they posed a potential cancer risk.

Philips had recalled millions of its CPAP machines from the market after concerns arose that components used in the device, especially the foam, could enter the airways and potentially cause cancer. The recall occurred in 2021, and further sales of the devices were halted. The money from the deal will cover injury claims for 58,000 people, earmarking $1.075 billion for a personal injury settlement and $25 million for medical monitoring.

Lawyers representing the plaintiffs stated,

“Ultimately, these combined agreements accomplish what we sought to achieve when this litigation began — holding Philips accountable by obtaining care for those with physical injuries and compensation for those needing new respiratory devices.”

CPAP machines, an acronym for continuous positive airway pressure machines, are used to treat sleep apnea, a serious sleep disorder where a person’s breathing is obstructed during sleep. This can be caused by the throat muscles obstructing the airways, brain disorders, or unknown causes. CPAP machines help restore the air supply via a mask and keep the airways open.

An estimated 33 million Americans use CPAP machines to treat the symptoms of sleep apnea, according to figures released by the National Council on Aging. Untreated sleep apnea can lead to several complications, including higher risks of developing diabetes, hypertension, and heart diseases.

Some customers alleged that Philips’ DreamStation machines, which were then the brand leader, had been expelling gas and bits of foam into their lungs. Philips made no admission of fault in its products and stated that most of the claims were related to “alleged technical malfunctions” that did not involve any serious injury or death. However, Chief Executive Roy Jakobs said in a statement on Monday that the company is genuinely concerned with any discomfort the patients may have experienced.

Philips is facing a number of litigations in the US and is effectively out of the sleep machines and ventilators market, with its presence limited to selling replacement parts and servicing the machines that already exist in hospitals and patients’ homes. Earlier this year, Philips agreed to a decree requiring it to halt the sale of its devices in the US until certain conditions are met. It also agreed to repair and replace the more than 1 million breathing machines currently used by patients in the US.

What can consumers do?

The settlement, which must be approved by a judge, entitles users to a $100 award if they return their recalled device by August 9, 2024 — the claim deadline. Users who believe their device is defective should act soon to verify this if they haven’t already, and Philips’ recall page offers ways to check serial numbers and register a product. A dedicated website is available which accepts claims for the financial-loss settlement. Payments tied to the settlement are expected to be completed by 2025.

The news has been welcomed in the share markets, and Royal Philips NV shares soared nearly 30 percent in Amsterdam since the settlement amount is much less than what was expected.

Also Read: Gerber and Perrigo Face New Lawsuit Over ‘Store-Brand’ Infant Formula Pricing; All Pending Toxic Baby Food Cases Consolidated into New Class Action MDL