April is Financial Literacy Month, a time to sharpen your financial skills and knowledge so you can make more informed decisions and keep your small business running smoothly. Understanding cash flow, tracking expenses and the other fiduciary responsibilities can feel overwhelming, but getting these essentials right can make all the difference in your business’s success. To help you navigate these challenges, here’s a guide with helpful tips and resources for managing your small business finances effectively.
Credit score
Your personal credit score helps lenders calculate the risk associated with lending to you or your business. The credit score is determined by your debt and payment history on things like credit cards, mortgages, or other bills. Also known as a FICO score, credit scores can range from 300 (worst) to 850 (best). Things that can impact your credit score include bad personal payment history, little to no credit history, and high credit utilization (meaning you are using a high proportion of your available credit).
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Whether you're seeking funding, aiming to improve your financial standing, or simply looking to understand your credit better, we'll provide you with essential insights and practical tips to help you make informed decisions and pave the way for your business's financial success.
Financial experts weigh in on the importance of National Financial Literacy Month for small business
In April, we celebrate National Financial Literacy Month, which serves as an opportunity to review your finances, assess your financial literacy and how it can help you take your business to the next level. In celebration of this special month, we reached out to some of our Venturize partners to get their thoughts on National Financial Literacy Month, key advice for business owners, and how their organizations work to support the small business ecosystem.
After setting up the basics of your small business finances, like opening a business banking account or choosing an accounting system, you may be thinking about taking out a loan. Learn about the key factors in creating a good credit score, and how that can help you build your credit.
If you’re in the market for an affordable business loan, you should be able to recall your credit score with similar ease. That’s because your score helps lenders gauge your financial fitness and the likelihood you’ll repay your loan. So if it’s in the right range, you can increase your odds of getting a business loan with great terms.
This post originally appeared on the blog of our partner, CDC Small Business Finance.