In spite of the administration’s recent proposal to give $30 billion to community banks to offer startup loans, many entrepreneurs are reportedly finding it difficult to secure startup funds. The Clarion Ledger offers some advice about maintaining good credit to get loans.The lack of credit combined with the reenactment of the Credit Card Act means that 680 – once an admirable a credit score that would win a loan at a low interest rate – is increasingly the cutoff number for qualification. According to the source, the difference between a good and a great credit score now translates into the difference between a rejected application and a loan.
Paying business bills on time might be the best way to maintain good credit in light of changing lending practices. Additionally, entrepreneurs are advised to do their homework on tightened credit standards at individual institutions to focus their energies on lenders who might help them.
Business owners might also benefit from seeking professional guidance on how to improve their credit scores to increase chances of securing loans. Entrepreneurs with companies of all business types can look to online incorporation service providers to see what they can do to improve credit scores.