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Credit Enhancement

Statistics on Entrepreneurs and the Importance of Strong Credit

1. 82% of small business failures are due to cash flow problems, according to a report from U.S. Bank. A strong personal and business credit profile can provide entrepreneurs with better access to capital and credit lines, allowing them to weather financial challenges and maintain cash flow.
2. According to the Federal Reserve’s 2021 Small Business Credit Survey, nearly 50% of small businesses applied for financing in the last 12 months, with personal credit playing a crucial role in whether or not they were approved. Poor personal credit can directly impact an entrepreneur’s ability to secure business funding, even if the business itself is performing well.
3. 29% of small business owners who applied for financing were denied due to low personal or business credit scores, per a 2019 National Small Business Association report. This highlights how essential a solid credit history is for growing a business and accessing the resources needed for expansion.
4. Small businesses with a credit score of 680 or higher are 2.5 times more likely to be approved for business loans compared to those with lower credit scores, according to a Nav Business Credit Report.

Why Entrepreneurs Need Strong Credit

Building strong personal and business credit is essential for entrepreneurs because:

  • Access to Capital

    Strong credit allows you to secure loans, lines of credit, and other financing to grow your business or cover unexpected expenses.

  • Better Interest Rates

    Entrepreneurs with higher credit scores can secure lower interest rates, saving money in the long run on business loans and credit.

  • Supplier Relationships

    Many suppliers and vendors check credit scores when extending payment terms. Strong credit helps you establish more favorable payment terms, improving your cash flow.

  • Separation of Finances

    Good business credit allows you to separate personal and business finances, protecting personal assets from business risks. With strong credit, entrepreneurs can take advantage of opportunities, manage risks, and build a resilient, scalable business.

How We Can Help

At Next Generation Wealth, we understand the critical role that a strong credit profile plays in the success and growth of your business. Our mission is to help entrepreneurs like you build and maintain strong personal and business credit to secure the financial opportunities necessary for your business to thrive.
Here’s how we can support you:

• Credit Assessment and Improvement Plan: We’ll evaluate your current credit profile and develop a customized action plan to enhance your personal and business credit scores, giving you better access to capital and lower interest rates.

• Access to Financing Solutions: We connect you with financing options tailored to your needs, including loans and credit lines that align with your growth strategy.

• Cash Flow Optimization: We offer strategies and tools to help manage and improve cash flow, ensuring you have the resources to cover operating expenses and invest in new opportunities.

• Vendor and Supplier Relationships: Our team helps you establish and maintain strong relationships with vendors by improving your credit score, so you can negotiate better payment terms and optimize your business finances.

• Credit Education and Monitoring: We provide ongoing education on managing and building credit, as well as monitoring services to keep your credit healthy and ready for any business expansion opportunities.

By partnering with Next Generation Wealth, you gain the expertise and support needed to build a resilient financial foundation for your business. Reach out today to learn how we can help you strengthen your credit profile and unlock the financial opportunities necessary for sustainable growth and success.

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