Tips to Improve Your Business Credit Score
Keeping a company credit card allows you access to the resources you need to maintain the daily running of your business. While it may seem obvious that your business credit should be in good standing, you may not realize how your credit score can affect your business and work in your favor. Here are some basic tips on how to ensure a good credit score so you’re able to more easily pursue growth and opportunities for your business.
Determining your score is based on your credit history and future likeliness of making payments on loans. If you plan on utilizing any type of traditional loan, you need to prove that you’re a solid candidate with minimal risk. While there are alternative methods of financing available if you can’t show good credibility, keeping good credit in the first place lowers the potential for giving up some control of your business or having to pay higher interest rates.
It’s important to continuously meet payment deadlines on time or early from the earliest stages of starting your business. Accessibility to opportunities down the road to grow your business may be based on how long and consistent your business credit history has been. Make your loan payments a top priority so you have the option of more easily expanding later on.
Obtaining a loan requires making your business information available to lenders and customers for review. Make sure the data provided to each credit bureau is the most current and accurate. Giving the clearest picture of your business status is an essential first step in convincing a lender you’re a practical risk to take on. Inquire about your lender’s credit bureau reporting practices so your good business credit is accessible to any future prospects as well.
Protecting Your Credit
Once you’ve established a worthy credit history, you should be taking some precautionary steps to protect it. While you have a lot of control over how your business is maintained, outside events like data breaches can throw even smaller businesses for a loop if you’re not prepared. Keep an eye on your credit reports so you can notice any unusual activity, and consider placing a fraud alert on your credit for even more protection. Taking advantage of online resources can also keep you informed about the impact of current data breaches.
Maintaining good business credit takes some time and consideration, but ultimately can allow you to experience the success and growth you have in mind for your business.