The startup world is livelier than ever. We have new startups in many industries almost on a daily basis. New ventures get funded and more products are catering to the specific needs and wants of the customers. The lively startup climate also makes following the latest rounds of investments more exciting.
For venture capitals (VCs) and investors, more startups don’t just mean more opportunities. VCs now perform more checks before investing in a company. Reviews may even include a review of the owners’ credit report. This is a good thing for startup owners.
Credit Score as a Factor
Until very recently, startup owners’ credits don’t really matter. VCs tend to look more into the company’s actual performance, its products and services, and the potential growth to be expected from the startup. Funding is given based on value and performance.
In recent years, however, VCs are more aware of the fact that investing in a startup means investing in the owners. It is much more important to work with startup owners with the same vision as the investors than to review startups based on sheer numbers.
The shift also brings startup owners’ credit score into the spotlight. Considering it is now easy to legally obtain one’s credit history for review purposes, it is not surprising to find this metric being used more and more. If you are a startup owner, you may even be required to submit your credit score before a round of funding.
Credit Repair to the Rescue
With more VCs leaning towards startup owners more, credit score becomes an important metric to maintain. If you want your startup to receive the funding it needs, now is the perfect time to start paying attention to your personal financial performance.
A good way to start is by enlisting the help of a reputable credit repair firm. The firm will help review your credit score and take the necessary steps to improve it right away. Fixing errors and filing claims are all done by experts, allowing you to remain focused on growing your business.
“Review your reports closely for any accounts you didn’t initiate, or for new or fraudulent charges on other accounts,” advises Lexington Law, a leading credit repair firm. “If you see errors or debts you don’t recognize, contact the credit reporting companies and the fraud department of each business reporting an error”.
Improving your credit score as a startup owner comes with a handful of additional benefits. The quick credit fix will actually allow you to gain access to more business financing, especially since lenders are more likely to work with owners that maintain good credit history.
You will also be displaying a sense of responsibility. This is a great trait to display as a startup owner and will help you land more contracts and deals with industry leaders and business partners. Naturally, you’ll enjoy many personal benefits from having a better credit score too. It is a worthy thing to do in today’s competitive market.