As a small business owner, you’ve probably learned the importance of having a good business credit score. If it’s low, it will influence whether or not lenders will work with you and can even determine whether or not a particular company will do business with you.
Even if you do find a lender to work with you with a poor business credit score, the interest rates will be higher, and the fees will decrease your chances of being successful. A bad credit score for your business is a lose-lose situation because your rates just keep increasing, which makes it that much harder to pay off debt. This means that you have no money to grow your business. Therefore, you need to take action to build business credit so that you can avoid this path.
Repairing Business Credit
In this section, we’ll look at the steps for repairing your business credit to get back on track and build business credit the right way. This will help you ensure that your company is successful.
Contact lenders and try to negotiate alterations in your payment options. If you’re struggling financially, many lenders will help. They’d rather offer you a restructure on your debt than get nothing if your business fails.
In addition to working on repairing the finances of your business, you want to work on repairing your credit as well. You should be using as much of your profit as possible to pay off your debts.
While they might already be doing so, be sure to contact lenders and request that they report account closures and repayments to the credit bureaus. This will do wonders for your business credit.
As a last-ditch effort, consider debt consolidation. This will be a long-term fix, making it easier to pay off your debt and get yourself back on track. It will take some time, but it’s better than declaring bankruptcy.
Once you have paid off your debt and gotten in good standing with lenders, pay attention to your credit usage. You don’t want to end up right back in the same place you were before.
If you’re struggling with building or repairing your business credit, contact BT84 Commercial Capital & Business Solutions. They can help you get on your way to better business credit.