Working Capital Solutions
for Small Business
HOW IS BUSINESS CREDIT DIFFERENT FROM PERSONAL CREDIT?
With personal credit, there are the three big credit bureaus that collect and sell data on consumers, and then there is Fair Isaac that generates “FICO” scores for those consumers based on the data in their credit reports. If a consumer wants to get a loan, the loan and terms they are able to get will depend greatly on their credit score. Business credit works roughly the same way, but the business credit system is completely detached from the personal credit system.
By this we mean that:
✓ Business accounts won’t be reflected on a person’s personal credit.
✓ Personal credit won’t necessarily affect a person’s ability to obtain business credit (Note: Personal credit can affect your ability to obtain business credit, but the two aren’t integrated automatically. A bank or lender might want to check your personal credit in addition to your business credit as part of an application process. There are sources, however, that will not require this.)
✓ The companies that score business credit and maintain business credit reports and data are, for the most part, separate from those that manage personal credit data, reports, and scores.
✓ Business credit is based on the business’s ability to pay back a loan, NOT on the business owner’s ability to pay.
The big key to understand is that business credit and personal credit are separate. Your ability to get a loan on your personal credit is not generally affected by your business credit, and vice versa.
Why does this matter?
For one thing, it matters because sometimes businesses need money to fund new expansions and other big expenditures. For the business owner, having a strong business credit profile means that their borrowing power will probably be more than DOUBLE what it would be if they did not have business credit.
Why Choose Us
We believe that providing experienced finance professionals to assist with designing funding solutions for small business is tantamount to maintaining a strong American economy. Our award winning financial services consulting firm has been successful with help startup and growing companies with getting access to capital by offering affordable online training and technical assistance services.
Learning to read, understand, and make business decisions is based on a skill of being able to interpret causal information provided in business financial statements. By taking our training courses on financial management, business owners will learn:
- How to Read Balance Sheets and Profit/Loss Statements
- How to Determine Financial Performance of the Business and
- Personal Income Planning
At Dominion Capital, we do not provide a “cookie cutter” approach to financing small businesses as is typically the case with traditional lending sources. Our team of advisors will work closely with the business owner to understand the business model and then design a funding solution and matching resources to complete the financing that’s right for you.