4 Ways to Improve Your Business Credit Score
Business owners need to focus on their business credit score. Having good credit ratings gives you several benefits such as better terms from vendors and suppliers and access to capital from financial institutions. The following are ways of improving your company’s business credit score.
Use Credit Cautiously
Getting a business credit score encompasses generating credit by opening a credit account and sending out loans application. Ensure that your company’s credit card is separate from your personal credit card. This is in a bid to help your business build up credit. Also, ensure you keep your credit utilization ratio and your debt levels as low as possible, this improves your credit rating. Avoid all financial activities that might hamper your business credit score.
Keep an Open Account
Ensure you do not close your credit card account, this is done in order to avoid negatively impacting your business credit rating. Also, keep those accounts active even if you do not utilize them in maximizing the amount of credit that is available to you.
Pay Bills Promptly
Delayed or late payment of bills can have a negative impact on business credit. Ensure you pay your bills as at when due, this act not only improves your credit rating, but also enhances good relationships with vendors, suppliers, and creditors. Being financially responsible is key to creditworthiness.
Monitor Your Credit Report
Every business owner should check his or her credit report at all times. This gives you room to check out for errors, inaccuracies, and outdated information that may cause a negative impact on your business credit score. In any case, you find any errors, reach out to the relevant credit reporting agencies and inform them of your discoveries so that your records can be amended.
For more advice on improving business credit scores and other sectors of business finance, contact us at Efunding Experts.