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The importance of credit score for small businesses

The list of things small business owners regularly keep informed of when it comes to their business is a long one. However, there are some important pieces of information that it is rather common for such owners to let slip through the cracks. A recent survey indicates that one such piece of information is business credit score.

The survey was by Manta. In it, over 2,900 owners of small companies were polled. Of the surveyed owners, nearly three-fourths (72 percent) indicated that they were unaware of what their small business credit score was. And there were some industries, like restaurants, in which nearly all of the respondents from the industry reported such unawareness. Why do you think this is so common among small business owners?

Why is it risky for a business to not know its credit score? Well, this score can impact a wide range of things for a business, from its ability to get a loan to what sorts of big contracts it might be able to get. So, without knowledge of this score, small business owners could be putting themselves in a position to be caught significantly off guard in matters that could have major impacts on their business’ future and what opportunities are available to their business.

In addition to what their business credit score is, another thing it can be important for a small business owner to stay informed on is how the different matters they are involved in could potentially impact this score. Many matters could have the potential to have credit implications, including the handling and aftermath of a business dispute. Experienced attorneys can help small business owners that are in such disputes stay informed of what effects, including credit effects, the dispute could end up having. They can also assist such individuals with looking into what strategies for navigating the business dispute might be best for their overall interests and their company’s well-being.

Source: Small Business Trends, “72 Percent of Small Business Owners Don’t Even Know Their Credit Score, Survey Says,” Shubhomnita Bose, Sept. 6, 2016