In the challenging and often unpredictable economic environment, entrepreneurs can find themselves having a poor credit score, which can negatively affect their chances of securing essential funding.
For those running small businesses or startups, your credit profile doesn’t just reflect your personal financial habits, it can directly influence your business’s future. Luckily, there are ways you can improve your credit score. Pokkit Score is a practical credit-building and financial wellness tool that empowers you to improve your credit score while saving money at the same time.
Whether you’re looking to qualify for business loans or you’re preparing to pitch to investors in future, Pokkit Score offers a strategic way to build financial credibility. Here, we’ll discuss how entrepreneurs can benefit from Pokkit Score Investments.
The Connection Between Your Personal Credit Score and Your Business
Personal credit scores are different from business credit scores, but they can be interconnected, especially for small businesses and startups.
Here’s how a personal credit score can affect a business:
Access to Initial Funding: New businesses without an established business credit history will be heavily scrutinised based on the personal credit score of the business owner.
Interest Rates and Loan Terms: A higher personal credit score can lead to more favourable interest rates and better loan terms for business financing. This can reduce the cost of borrowing for the business over time.
Leasing and Vendor Accounts: Just as with loans, landlords for commercial leases and suppliers for vendor accounts may check the personal credit of the business owner, particularly if the business is new or small.
Insurance Premiums: Some business insurance providers may consider the personal credit score of the business owner when determining insurance premiums. A stronger personal credit score can potentially lead to lower insurance costs for the business.
Perception of Reliability: Having a low credit score can be one of the reasons holding you back from funding. While reliability is less tangible, a strong personal credit history can contribute to a perception of reliability and financial responsibility for the business owner, which can indirectly benefit the business in various dealings.
How Does Pokkit Score Work?
Pokkit Score is a financial wellness tool designed to help you improve your credit score and save money. Pokkit Score lets you make monthly payments between R100 and R4,000 that you can withdraw at a later stage. These payments are reported to major credit bureaus, improving your credit score over time.
Pokkit Score Key Features
Pokkit Score is built with simplicity, flexibility, and financial impact in mind. Here are the standout features that make it a powerful ally for entrepreneurs:
Credit-Boosting Savings: Make monthly payments from as little as R100 up to R4 000, which are reported to major credit bureaus, helping to steadily improve your credit score with each successful payment.
Flexible Savings Plans: Choose a 12- or 24-month voucher plan based on what you can realistically afford. At the end of the term, redeem your full savings with no penalties.
Earn Interest: Your monthly payments, minus Pokkit Score’s fees, will be placed into the Allan Gray Money Market Fund through the Automated Outsourcing Services (Pty) Limited, a third-party provider to Pokkit Score, where they will earn interest for you.
What Are the Risks of Using Pokkit Score?
Pokkit Score comes with the risk of further damage to your credit score if you miss any payments. Thus, before you sign up, you need to plan ahead to establish how much you can realistically afford to pay and if you can do it on a consistent basis.
Give Your Business a Better Chance at Survival Through Credit Improvement
Investments in tools like Pokkit Score can provide substantial long-term benefits. Improved credit scores not only support immediate financial objectives but also contribute to the overall resilience and adaptability of your business in a fluctuating market.
A strong credit score acts as a safety net during economic downturns. It enables you to access loans without the prohibitive costs associated with poor credit. For entrepreneurs striving for success, understanding and managing credit scores is a critical task.
Tools like Pokkit Score offer an innovative way to gain control over your financial destiny. Through real-time insights on your credit status and strategic recommendations, you can improve your business’s credit score, thus securing better financial opportunities.
