Strong Credit is Crucial For Small Business Owners Seeking Funding

WASHINGTON, March 15, 2023 /PRNewswire/ -- Two-thirds of small business owners say they could benefit from outside financing, yet many of them either do not apply or do not qualify, according to SCORE, mentors to America's small businesses and a resource partner of the U.S. Small Business Administration. One of the factors that prevents small businesses from seeking or obtaining financing is poor credit history.

"A poor credit history can hold you back when pursuing funding for your small business," said SCORE CEO Bridget Weston. "SCORE can help entrepreneurs understand what is in a credit report, how to check your score and how to improve it."

This National Credit Education Month, SCORE is offering resources to help entrepreneurs better understand credit and achieve financing to start or grow a business. These resources include free, on-demand webinars such as Smart Credit Strategies for Small Business Owners, which provides information on how small business lenders view personal credit scores, as well as simple strategies for building strong business credit.

Most small business owners seek financing to meet operating expenses, according to a SCORE meta-analysis, with female business owners more likely (62.3%) than male business owners (54.6%) to cite that as the primary reason they need funding. Women looking to start a business also cite a lack of funds as their top challenge – 61% worked a day job to save up enough money to open their business – a financial burden that affected more women of color. 

To help overcome credit and funding challenges, SCORE offers free mentoring along with educational resources specific to the needs of small business owners. These include free templates for financial projections, balance sheets, personal financial statements and more.

What started as a side hustle for SCORE client and entrepreneur Ashley Stone, CEO/Founder of Beauty Entourage, is now a mobile beauty business that spans across the country. "My SCORE mentors helped me understand the operations of my business at a higher level," says Stone. "They helped me track and analyze various aspects to better project an outcome, plan my budgets and provide additional resources that led me to secure my first line of credit."

For more information, visit SCORE.org.

Since 1964, SCORE has helped more than 11 million entrepreneurs start, grow or successfully exit a business. SCORE's 10,000 volunteers provide free, expert mentoring, resources and education in all 50 U.S. states and territories. Visit SCORE at www.score.org.

Funded [in part] through a Cooperative Agreement with the U.S. Small Business Administration.

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SOURCE SCORE