In the same way that good personal credit is important, business credit has many benefits. Every business person should work hard to make it better by the day. The good thing is that there are many ways of improving the scores no matter how damaged they are. Alternatively, a quick and safe way is to boost credit through the use of experts.
Most businesses are interested in making this score better to increase the chances of obtaining loans, building a reputation and finding business partners. If you are such a business person, this publication is for you. Here is what you should do.
Reduce Debts
Borrowing is good because it funds business growth, but too much of it is not okay. The greater the debts, the higher the chances of damaging the credit rating of the business if revenues decline. The recommended debt level is 30 percent of the credit rating. Businesses that respect this rule of thumb for business stability avoid borrowing for things that can wait. Only borrow when all other avenues have completely failed.
Ensure That Vendors Report Credit History
It is known that vendors and lenders only report bad credit history to the credit bureaus. But they can also report the good scores as well. If you work hard to ensure that your business is doing the right thing, it is then worth it to report this also. Ask your lenders to submit the good credit history so that your rating will go up. In fact, this is used by the experts to repair poor credit history.
Pay Loans in a Timely Manner
Lenders will not hesitate to report your poor loan payment records and habit of defaulting to the credit bureau. Therefore, you must take the responsibility of paying the loan in a timely manner. If there is a problem, learn to negotiate with the lenders before they list your business negatively. Most of them will understand if you communicate and make realistic commitments. Additionally, you can seek an alternative source of funds to clear the loans that cannot wait.
Read the Credit Report Frequently
Knowing how the business is performing in terms of credit score is very important. You may be surprised to find a good business listed as having poor credit due to some mistakes. The faster this is sorted out, the better because future creditworthiness could be jeopardized. Most credit bureaus offer one or two free credit reports annually, but one can obtain the report at any other time if she or he is willing to pay a fee. It is up to you to know how often you will need the report.
Use Credit Repair Experts
Credit repair experts come in handy if the business is performing poorly already. If there are many loans and bills strangling a business that cannot perform sufficiently, ask the experts to help you get out of the mess without damaging the credit score. These experts negotiate with the lenders on your behalf, lay out a repayment strategy and advise the business on how to handle debts henceforth. Although the experts charge, every business needs them in a situation like this.