A personal credit score is a reflection of how someone repays their mortgage, auto loans, or other personal obligations and is typically demonstrated in a score from 300 to 800. The higher the score the better. A business credit profile reflects how business owner meets their business financial obligations. While there is no universal business credit score, some of the bureaus score different business behaviors to represent creditworthiness. The three primary personal credit bureaus are: Experian, Equifax, and Transunion. The three primary business credit bureaus are: Dunn & Bradstreet, Experian, and Equifax.
echnically factoring is not a loan; it is the purchase of future receivables. A third party, known as a factor, purchases a company’s invoice(s) or purchase order(s) at a discount giving a business owner access to a percentage of that invoice or purchase order now, instead of when the invoice or P.O. is paid. The balance, minus the agreed upon discount, is paid to the business owner once collected by the factor.
A line of credit is a revolving loan that provides a pre-determined capital limit that can be accesses as needed. Unlike a traditional term loan, all or part of the line can be accesses at any time up to the pre-determined limit. Interest is only paid upon the amount actually used.