Date Posted: 10/17/2012 11:39:55 PM
Posted By: saucer Membership Level: Gold Total Points: 4885
You are a business owner and you deal with financial institutions to get loans and credit services. These services help you sustain and grow your business. You will at one time or another have to use these services. This is when you have to maintain a good relationship with the banks, so that in the future you will not have problems when wanting to access the credit services. Below are reasons why you must have a good credit record.1) To have a good credit report. When you have used credit facilities it is important to pay back without defaulting. This will give you a good credit report in the financial institutions. This credit report is essential especially in your future dealing where when you want to access the loan facilities. This will not be deterrence in the growth of your business.2) You may want a business partner to assist in your business. When trying to get a business partner it is important to have a good credit so as to make them see you are an organised person capable of keeping the books in order. No body will invest in a business that is risky and in debt because of having a bad credit record.3) You may want an investor. In the event when you are looking for extra capital you may consider having an investor. Investors likewise to partners will not venture in a business that has bad credit and in debt. Such that it cannot get credit facilities in the future. They will assume that the business is not meant to grow and be competitive meaning no profit for them. Having a good credit record will show that you are organised and committed in what you do.4) You may want to start another business. In business it is common for successful entrepreneurs to venture in more than one business. In the event of such happening you ought to have good credit so that the burden of you prior business to not affect your next business venture. You want to be paying your loans on time so that getting loans to start another business will be easy and with little obstacles.5) You may want to retire. When you are in your twilight years you may want get a break from your business. You do not want to retire having a huge debt hanging over you. You may want to pay your debts in an orderly manner so that when it is time to retire you will not have a huge burden over your shoulders looking for ways to repay your loan. You may also want to have a pension that can sustain your later days.
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