23rd March, 2021
Credit is one of the most important assets for an entrepreneur. Lenders peruse the credit history and score of the person to determine his eligibility, credit limit as well as rate of interest.
Investment organizations, venture capital firms, and angel investors also check an entrepreneur’s credit score before deciding whether to invest in his company. So maintaining strong credit is crucial for success in business. Ashton Henry, the expert in this field, sheds more light on the same. Let’s delve.
Ashton says, “When you have a strong credit history, it shows your potential investors that your finances are in good shape and they can, therefore, trust you.”
Ashton wants to remind the readers that even businesses which don’t sign up for loans are not free from the responsibility of maintaining creditworthiness. They must have a strong credit history.
What could affect one’s creditworthiness? Ashton answers, “There are many reasons. But one of the most frequently occurring ones which can leave a stain on one’s credit reports is false information.”
It’s a common occurrence among entrepreneurs. So its important to keep a regular check on the credit report. This will not only help one be up to date about his current creditworthiness but also allow one to keep track of his debt and challenge false information in his credit report without further ado.
In this regard, Ashton draws attention to an important point, “It’s a common thing that businesses are mistaken for other businesses having identical names. So the last thing you want is the bank or an investor turning down your line of credit for another business’ credit mistakes, the name of which is similar to yours. It can even affect your credit score.”
Ashton, from his extensive experience in the field, has gathered that kids in America are educated about things they often won’t make use of, but are left in the dark when it comes to learning about things like wealth creation and managing one’s credit.
For instance, most people in the US consider purchasing a home as an asset when in fact it is a liability. So, it’s time everyone wraps their head around understand credit and learning the ways to maintain strong credit if they want to be a successful entrepreneur.
Ashton is a sought-after entrepreneur in the field of financial literacy, credit, taxes, real estate and investment spaces. Looking at his knowledge and experience, Ashton’s advice is well worth considering.