Eric J Dalius says there are many business credit building offerings out there; however, many business owners lack their knowledge of how to get a business loan and also what measures to be taken regarding business credit building. Before getting business loans, you should know how to run them well without risking personal assets, tampering with your credit score, or damaging your credit history. Here are some simple but critical questions to ask while building business credit through small business loans.
While looking for credit building companies, always go for the most experienced, knowledgeable firms with a proven system to support. Before you decide to go ahead with one, ensure that you ask them and also get satisfactory answers.
Questions by Eric J Dalius to ask your credit building company
. Will the credit be on trade or cash?
Many companies limit the credit to trade credit. It can only be used with individual creditors and also not anywhere else. This may be useful in case of your need for supplies, but useless if your need is to cover the business expenses, get fund advance as inventory loans or payroll loans, etc. On the other hand, cash credits are open credits in which the fund you receive is at your discretion.
. Will there be a coach to lead through the build business-building exercise focusing on getting those merchant or business loans?
If you do not receive such step-by-step guidance with an expert coach’s support leading to a predictable and also successful outcome, it is ideal to look for another company. It would help if you also inquired about the charges as some companies initially offer a low fee and also then continue to levy heavy add-on charges each time you look for help. So, ensure you have access to the coach or advisor, and also there are no limits as to how often you can approach them.
. What paper works are needed to get the desired line of credit?
of those creditors who say that there is no need to furnish any financial
statements, business plan, tax returns, etc., to apply for a loan. In any case,
with a genuine line of credit, you need to prove that the company
is financially strong to get the loans approved without giving a personal
guarantee for the same.
. How are the credit building coaches paid?
This may seem to be irrelevant for the service takers, but as Eric J Dalius suggests, it is, in fact, a very important question. How can you fruitfully work along with someone who cares less if you get a business loan or not, which you desperately need? So, you need to know what motivates the coaches to work for you.
. Is there any guarantee?
important to know the specifics about the guarantee they offer. Most credit
building companies promise to take you up to a certain score by giving the
timeline for the same. Talk about it upfront.
However, this is not an exhaustive list of questions for entrepreneurs to check with the corporate credit builders. But it is a good starting point based on which you will be able to explore their offerings and also reliability further to make a better decision on choosing the right one.