Your business credit score is a measure of the financial success of your company. Creditworthiness is rated by assessing your payment history, outstanding balances, and other factors. It is worthwhile to improve your business credit score because it will enable your company to obtain better financing. Here are some strategies to help you accomplish this.
Find Out Your Current Score
The first step, of course, is to be aware of where you stand. Query the major credit reporting agencies to find out your business’s present score, and then set a goal for improving it.
Report Positive Payments
Establish good payment relationships with suppliers, who will then report your positive payments to the credit bureaus. If some suppliers do not report directly to the agencies, manually insert trade references from these business contacts into your agency files.
Pay Bills Promptly
Your payment reports will only be positive if you take care of your bills in an expedient manner. One of the most important habits to cultivate if you want to raise your business credit score and keep it high is prompt payment of all bills.
Keep Your Credit Utilization Ratio Low
Credit utilization ratio is calculated by comparing the amount of credit your business uses with the amount of credit it has available. You can lower your credit utilization ratio by cutting down your use of credit cards, asking your providers to increase the amount of credit you have available, reducing or eliminating your balances, and possibly opening a new line of credit but making minimal use of it.
Have Negative Accounts Deleted
If you have debts that have gone to collection, get an assurance from the collection agency that they will delete the account after you pay. Otherwise, the negative account will remain on your record.
Monitor for Errors
It is important to periodically monitor your business credit reports to be sure they are up to date and error-free. If you find any discrepancies that might negatively impact your credit score, call the agencies to correct the mistakes.
For more advice on improving business credit scores, contact BT84 Commercial Capital & Business Solutions.