It's no secret that many small and medium-sized ventures struggle to secure essential growth and startup business loans – especially from traditional sources. Many business owners still fall back on personal savings and their own credit cards in fact.
A survey by Nav, an American company helping SMEs access finance, shows that out of the businesses rejected for funding, almost half (45%) were turned down more than once, and 23% didn't know the reason for failure.
However, the research did discover a common thread among business owners who submitted successful business loan applications. Those who understood their business credit scores were 41% more likely to get funding. But nearly half didn't realise they even had a credit score for the business, and 8 in 10 didn't know how to interpret it.
This knowledge gap is harming SMEs as well as the US economy, according to Nav.
Without knowing how to prepare for a small business loan application, an enterprise's chances of survival and growth can be seriously affected, so it's worth getting advice on protecting your credit rating.
For more survey results, take a look at Nav's infographic: