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How do business credit and business funding strategies differ in building a company’s financial capacity?
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Business credit builds financial capacity through credit lines for purchases, whereas business funding builds capacity through obtaining actual funds.
What is a key difference between business credit and business funding?
Business credit is focused on building credit for specific store use, whereas business funding is focused on obtaining actual money using personal credit.
Is having an established company necessary for business funding?
No, even new companies can get business funding if they use personal credit.
In terms of priority, what is the major focus of business funding?
The major focus of business funding is securing financial resources (money).
How much does personal credit affect business funding?
Personal credit affects 95% of a company’s business funding.
What does business funding primarily rely on?
Business funding primarily relies on the owner's personal credit.
What is business credit typically used for?
Business credit is typically used for open lines of credit with other companies like Cringer, Grill, and Uline, and is limited to using credit in specific stores.
What is the primary purpose of business funding?
The primary purpose of business funding is to obtain money, not just lines of credit.
What are examples of companies where business credit lines could be used?
Examples include Cringer, Grill, and Uline.
Can new LLCs obtain business funding without documented income?
Yes, new LLCs can potentially obtain business funding without documented income.
What does the term 'open lines of credit' refer to in business credit?
It refers to the ability to make purchases on credit from other companies, typically limited to specific stores.
Why do business owners need good personal credit for business funding?
Business owners need good personal credit because most of the funding they seek is based on their personal credit score.
How important is an 80 Paydex score to lenders?
An 80 Paydex score is not important to lenders.
What is the goal of obtaining an 80 Paydex score?
The goal of obtaining an 80 Paydex score is to build business credit.
Why might lenders be uninterested in an 80 Paydex score?
Lenders might be uninterested in an 80 Paydex score because it does not significantly influence their decision to provide funding.
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