If your company is at the early stages of its entry into the business world, you may not be impressed with your credit score. But lending institutions rely on years of borrowing history to determine if your business is worthy of a good standing. Fortunately, you can boost your company’s credit rating with the following 5 swift strategies.
Pay Your Bills On Time
The best way to build an excellent credit rating for your business is to pay your bills on time. Items such as rent, credit cards, utilities and other expenses can have a significant impact on your score. If you’ve obtained a small business loan, you want to ensure that you don’t miss a payment. You can set up a reminder in your accounting system that alerts you to the upcoming due date. You can also implement automatic payments. If you have the funds, you may even want to pay your bills the instant that they arrive. Missing a credit card or loan payment may cause your rating to drop. If this is a one-time occurrence, speak with a representative to see if they can clear the late fee.
Keep Your Profile Strong
Your business reputation is important, and it can affect your success over the years. You can start by creating a positive work environment. An office building centrally located helps keep you in the eye of the consumer. The right office furniture defines your work place and provides comfort to your employees and guests. You can also boost your company reputation by managing your businesses credit profile. Through Dun & Bradstreet, you can apply for a DUN number. D&B will gather the particulars such as financials, liens, registrations, etc. As the company grows, you can keep your company’s comings and goings current. Make sure to include trade references from vendors you have a glowing payment history with. If you go to borrow money in the future, the positive feedback will assist you in keeping a strong profile.
Be Alert to Errors
Credit reports aren’t always accurate. As a matter of fact, approximately one in five consumers have found errors. If your credit report states that you’ve been late with a payment, and you can prove that you’ve paid on time, you can dispute the mistake. Receipts, statements and any other correspondence can assist you in making a solid case. Once the problem has been rectified, check back again to make sure it’s been taken off the credit report.
Open New Lines of Credit
Although you want to live within your budgetary means as a business owner, opening up new lines of credit looks good in the eyes of the lending institutions. You can begin by opening a business credit card. Put items that you would normally write a check for on the credit card such as meals out with customers, travel, supplies, gas, tolls, lodging and car rental. When the statements come in, you can pay off the entire debt. If you stay timely with your payments, you’ll begin to see your credit score on the rise.
Monitor Your Score
Credit reporting companies allow consumers a free yearly credit check. But if you want to stay on top of your finances, you can pay reputable companies such as Equifax or Experian to regularly monitor the financial health of your business. For a fee, they’ll be able to alert you sudden dips. When you’re diligent about monitoring your credit regularly, you’ll be able to correct mistakes, curb your spending and plan for the future of your business.
If you’re a business owner who is anxious to take your company to a new level of success, strengthening your credit score may seem tedious. But when you follow the above swift moves, your positive credit habits will help your business grow and flourish and in record time.