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Matt Kennedy

Jack Barney Financial
Credit Counselor

Contact Information:

Bakersfield, CA 93312
United States
T: 661-679-4580
F: 661-215-6198
www.jbfunding.com

Years in Business:

 

20

Clients I'm Seeking:

 

Business Owners I help business owners get the credit and money they need to start, expand locations or simply grow their businesses

About My Business:

 

Welcome to the exciting world of business credit. Business credit is an important tool for any business, and can be extremely useful for obtaining funding and maximizing a business owner’s borrowing power. So what exactly is business credit? WHAT IS BUSINESS CREDIT? The simple definition of business credit is: Business credit is credit that is obtained in the name of a business. That’s a start. But one key thing we need to understand about business credit is that it is NOT built on the same credit system as personal credit. 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 I 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 & maintain business credit reports & data are, for the most part, separate from those that manage personal credit data, reports, & 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.

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