Running a business comes with changing cash flow needs. Funding can help you manage growth opportunities, buy stock, cover short-term gaps, or handle unexpected expenses. Your credit score is one of the things that affects how easily you can get that funding.
What your credit score says about your business
Your credit score reflects how responsibly you manage repayments and debt. For many small businesses and sole proprietors, lenders also look at the owner’s personal credit profile when they assess a funding application. In a smaller business the owner and the business are closely tied together, so the two tend to go hand in hand.
Lenders use your credit score as a helpful tool. It gives them a picture of your financial history, which helps them offer you the right borrowing options. A stronger credit profile, along with steady trading and healthy sales on your VodaPay card machine, can improve your chances of approval and open up more funding options later on.
How VodaLend looks at your application
When you apply for a VodaLend Business Cash Advance, we look at two things together:
- Your trading on your VodaPay card machine. This is how consistently you trade, your turnover, and how long you’ve been with us.
- Your credit profile. This covers your payment history, your debt levels and your account record, both yours and the business’s.
Strong sales on their own aren’t always enough. If your credit profile is weak, you might get a smaller offer or a longer road to approval. Both sides count, and both are things you can work on.
3 habits that build a healthier credit profile
Building a healthier credit profile takes time. There’s no shortcut, but a few simple habits, kept up consistently, make a real difference.
1. Pay your accounts on time, where you can.
Your payment history matters more than anything else in your credit score. Keep in mind that paying regularly is not the same as paying on time. What counts is settling each account on or before its due date, every time. Even one late or missed payment can affect your score for months, so set up reminders or debit orders for the accounts that count.
2. Check your credit profile regularly.
You can get a free credit report from each of the major credit bureaus, including TransUnion, Experian and XDS. You don’t need a reason, and you don’t have to be applying for credit. Just ask. You can check your credit profile for free at any time with Experian by visiting up.experian.co.za
3. Don’t take on more debt than you can comfortably manage.
Try to keep the balances on your credit cards and store accounts well below their limits and avoid applying for several new credit products close together. Too many applications in a short space of time can pull your score down, even if you don’t end up taking the credit.
Keep these habits going and you’ll keep your funding options open as your business grows.
When you’re ready: VodaLend Business Cash Advance
VodaLend Business Cash Advance is funding built for merchants who trade through a VodaPay card machine. Here’s what you get:
- Up to R1.5 million in funding, depending on your sales
- Repayments that come off as a small percentage of your daily card sales, so there are no debit orders and no fixed monthly instalments
- No collateral needed
- Money in your account within 48 hours of approval
Log in to your VodaPay merchant portal to see how much funding you qualify for. Here’s how:
- Log in with your VPS number.
- Go to “Get financed” to view your offer.
- Adjust the funding to suit your business.
- Accept, and unlock the funds to grow your business your way.
Funding offers are subject to verification, affordability and credit assessment. VodaLend Business Cash Advance is a funding solution for qualifying merchants. Terms and conditions apply.
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