To be successful in business, it is important to have a strong financial foundation. This means having good credit scores and using the credit system to your advantage. Unfortunately, many people struggle with their credit scores and do not know how to improve them.
One person who has dominated the credit industry and helped dozens of brands, entrepreneurs, and individuals to transform their finances completely is Diego Gonzaga. The young financial expert is the founder of Favorite Financial, a financial services firm that has helped to restructure and improve the way thousands of individuals across the United States.
Through his company, Diego Gonzaga and his team offer consulting, guidance, and tips on improving credit scores. They also work with clients to help them find financial freedom by utilizing the credit system in their favor.
This article will discuss improving your finances and business by mastering the credit industry. We will also talk about ways to boost your credit scores and maintain them over time. Having good credit can be a huge asset for any business owner.
How Businesses and Entrepreneurs Can Improve Their Credit Score
Your credit score is one of the most important aspects of the modern way of life. A high credit score can help you easily secure loans, generous lines of credit, and other financing products that you can leverage to help your business grow.
On the other hand, a low credit score can result in surprisingly high interest rates and make it difficult to secure necessary funding. That’s exactly why it is so important to understand how personal and business credit is structured and what you can do to maintain an excellent score. If you’re a business owner or entrepreneur, there are a few key things you can do to improve your credit score.
In a recent interview with Favorite Financial’s CEO on how struggling businesses can improve their credit scores, he had this to say:
“First and foremost, be sure to set all of your credit cards and recurring bills to auto-pay to avoid a late payment at all costs. Late payments impact your credit score severely and can very easily be avoided. Secondly, before applying for that new and shiny rewards card you’ve been receiving ads in the mail for, always consider the weight of the annual fee.
Please don’t allow an annual fee to be the reason why you decide to cancel the card and forfeit the credit history you’re slowly building. Lastly, before applying for new cards it’s important to decide whether your goal is cashback or generating points from your spending to use for free travel & more. Then, you’ll easily narrow it down to a credit card that best fits your lifestyle.”
How the Credit Industry has Grown Amidst its Foreseeable Challenges
The credit industry has seen a lot of growth in recent years. This is despite the challenges it faces, such as high levels of debt and bankruptcies. One of the reasons for this growth is the increasing use of credit by businesses and consumers. Businesses use credit to finance their operations, while consumers use it to purchase goods and services.
Another reason for the industry’s growth is the improving economy. As the economy improves, more people are able to repay their debts and keep up with their payments. This has led to a decrease in defaults and bankruptcies.
Despite these challenges, the credit industry is expected to continue growing in the coming years. This growth will be driven by the increasing use of credit by businesses and consumers.
According to Diego Gonzaga, the financial services space will forever be as stable as law firms. Just like there will always be crime and civil lawsuits in society, there will always be inaccurate information & derogatory accounts hurting someone’s credit score.
How Entrepreneurs and Individuals Can Secure Funding to Stay Afloat?
One of the most difficult things for individuals and entrepreneurs to do is to secure funding to stay afloat. This can be especially difficult if the business has a poor credit score. In these cases, it may be necessary to turn to alternative sources of funding, such as venture capitalists or private investors.
“Business credit is becoming increasingly important for new and existing businesses to scale effectively and building the proper foundation to receive a healthy “paydex score” is instrumental to receiving funding. The very first step is applying for what’s known as a “dun and bradstreet” number. This can easily be done on dnb.com,” Diego Gonzaga advises.
How Favorite Financial improves credit scores and Facilitates for Financial Freedom
At Favorite Financial, obtaining a good credit score for businesses and individuals is a top priority. This springs from the need to help people ease the difficulty of improving their credit scores.
According to the firm’s CEO, Diego:
“Improving your credit score is the key to financial freedom. A good credit score gives you the ability to get better interest rates on loans and lines of credit. It also gives you more negotiating power when it comes to leases and contracts. And, it can help you save money on insurance premiums.”
For Diego Gonzaga, the desire to help people obtain financial freedom is rooted in his experience as a college student. As a student running a work-study program, he became aware of many factors that make people struggle with their finances. This is why he launched his company, Favorite Financial, to ease these financial problems.
“Leading up to the successful launch of Favorite Financial, I was in college studying global affairs and working in The White House during the Trump administration. It was a memorable experience filled with a long list of valuable lessons that I’ve used to build my business systems from scratch,” Diego Gonzaga shares.
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