If you are a business with less-than-stellar credit, that can pose a problem when it comes to getting loans and capital to help you invest in and grow your business. About 40% of businesses who apply for loans are denied due to poor credit.
What can you do?
Raise your business’s credit score.
How do I do that?
The following are 5 great steps to help your business raise its credit score:
Keep Your Information Updated with All 3 Bureaus:
You should be regularly updating your credit scores with all three credit bureaus regularly. It’s recommended that you Dun & Bradstreet, Experian, and Equifax. Each bureau calculates your credit score a bit differently, but they all hold weight in whether or not you qualify for a business loan. Updating and reporting your information regularly can help you determine when you are able to qualify for the loan you need.
Establish Trade Lines with Your Suppliers:
If you purchase anything from third-party businesses that will help you build your credit. Since you don’t know if and when vendors report your statistics to the credit bureaus, you should regularly check to make sure things are up-to-date as possible. Even working with a few individual suppliers can help up your credit score.
Make Payments on Early or On Time:
Ensuring that you are making your regular payments on a regular basis can help ensure that you are being assigned the best scores possible. Paying on time (or early) shows that you are honoring your debt and making sure that you are responsible for the money that you borrow.
Borrow From Lenders That Regularly Report To Bureaus:
When you are borrowing money to help improve your business, be sure that you are borrowing from lenders that report to the credit bureaus. Sometimes they will do this semi-annually or even quarterly. Just because your lenders DO report doesn’t mean that you shouldn’t. Always keep filing your reports even if your lenders do it.
Keep Your Public Records Clean:
Be sure to keep your business’s name and your personal name out of trouble with the law. Be sure to keep your public records updated and personally ensure that they are clean to avoid your business having trouble with the law.
These 5 steps can help your business build up the credit score that you need to ensure that you can get loans from lenders easily when you need them. That capital will help you invest in and grow your business in the future!
For more information, please be sure to contact us! We are always here to help you and believe you can take that credit score to the skies!