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LENDING

What is credit?

 

Build your understanding of how credit works and what it can do for you and your business.

 

3–8 min. per chapter

 

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What this course covers

 

This course is designed to help business owners find the information they need to start their credit and borrowing journey. You’ll explore topics like:

  • Personal vs. business credit
  • How credit scores are calculated
  • Understanding creditworthiness
  • Tips for building better credit

Tools

 

Interactive tools throughout the course can help you review important ideas and put them into practice for your own business. This course includes:

  • Course quiz

Chapter overview

 

Start to explore the basics of credit. We’ll introduce three types of credit that could be useful for your business, including credit cards, business lines of credit and term loans.

 

Key concepts

  • The definition of credit
  • Why trust and relationships matter
  • Three common types of credit

 

Key terms

  • Term loans
  • Credit
  • Business lines of credit

 

Est. time to complete: 3 min.

Chapter overview

 

Your credit history doesn't exist in a vacuum. Find out how your personal credit history is determined and what your personal credit score could mean for your business. 

 

Key concepts

  • Why lenders look at your credit report
  • The most common credit bureaus
  • What’s considered a "good" credit score

 

Key terms

  • Credit bureaus
  • Personal credit history
  • Credit mix

 

Est. time to complete: 6 min.

Chapter overview

 

Your business credit history matters a lot to lenders. See how business credit history differs from personal and why separating expenses can be a strategic move.

 

Key concepts

  • Understanding business credit history
  • Factors that can affect your business credit score
  • Personal vs. business credit reports
  • Understanding sole proprietorships

 

Key terms

  • Paydex score
  • Failure score
  • Delinquency score
  • Sole proprietorship

 

Est. time to complete: 8 min.

Chapter overview

 

If credit scores are so important, how do you keep yours in good standing? In this chapter, explore practical tips that could help you build better personal and business credit.

 

Key concepts

  • How to establish yourself as a borrower
  • The importance of building and maintaining good credit

 

Key terms

  • Employer identification number (EIN)
  • Limited liability company (LLC)

 

Est. time to complete: 6 min.

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