Your Business Credit Score, How To Improve It
Your business score means about the same thing as your personal score does. It allows you to borrow money, seek investments, and buy things. But instead of loaning or buying a car, you are seeking much more expensive equipment and capital to keep the business bringing in money. Realize that your credit score for the company is a crucial thing to keep high; here are some tips on how to do that.
Know What Can Affect Your Score
You should have knowledge of what kinds of things can affect your score. Loans or any kind of debt should affect it, but so will other things that you may not even realize. So request a copy of your company credit report as soon as you can and sit down to analyze it. Pay special attention to anything in the negative category. You might be able to fix mistakes or take bad marks off of the report.
With due diligence you can change what is on the credit report by reviewing it often. So seek out a financial advisor or a friend who is good with credit and figure out what you can do to look better in the eyes of the bureau. If you call the agency, they may also be able to give you sound advice. The government sanctions them, after all, so their duty is to help you.
Make Sure That Everyone Is Reporting On Time
Your vendors might be messing up your credit score without you even realizing it. Just as credit card companies or other such companies can ruin your personal score by not reporting on-time payments to the credit bureau, other companies can fowl up your company score. So once you have checked out your credit report, call up companies that may have a part in the negative content. Make sure that they contact the credit bureau to fix the mistakes. It can take a while so continue to bother them until they set things right.
Pay Back Your Loans
You need to pay back your loans on time to keep your credit score good. Even if you do pay them on schedule, however, loans show up as a red mark on your report. They take away from your credit. So make sure to pay back loans before taking out more. The loan company should be the first entity you pay once you begin making profit as a company. You can pay them off faster, and perhaps even save on the interest that would accrue otherwise. Be smart with your money and with your investor's money.
Write down your company credit score and have a goal to get it to a certain number. Then write down what you will do each month to accomplish this. Just like any other goal, you need to take the concrete steps to make it happen. Thinking about it, talking about it, or wishing it away would do nothing for you. So treat your credit score like a friend and get well acquainted with it. Learn everything about it and fix it up.
Keep A Budget
Keep a company budget so that you stay within your means. Just as would keep a budget for your personal finances, keep a steadfast, reasonable one for your business. Have your accountants keep track of the books and make sure that you never spend more than you make, once you begin making profit.
With these tips you can be on the way to improving the credit score of your business. Start now to unload the baggage of a bad score and see what a good rating can do for your company.