Have Your Business Easily Financed with A Great Credit Score

Just like your personal credit score goes a long way in helping you get loans, the credit score of your business is a major deciding factor in getting a line of credit. Credit reporting agencies will use various methods to calculate the creditworthiness of your business, putting in consideration various factors like number of trade experiences you have, outstanding balances, payment history etc. This number will go a long way in getting you loans. For most of us, loans are not an option but an absolute necessity for starting a business, simply because it is not possible for most people to turn out all the initial expenses from cash savings.

In case your credit score turns out to be low, here are a few easy methods by which you can work on improving it:

Check your credit report: Start with assessing the situation. You can easily get your credit score checked from any major credit reporting agency like Dun & Bradstreet, Equifax, and Experian. Once you have a fair idea of what you have at hand, you can work on improving it.

Pay your bills on time: Timely payment of bills is an easy way to improve your credit score as well as stay organised in your business. All you need to do is feed the dates of bill payment in your phone and follow through as per the reminders.

Decrease your credit utilization ratio: If you have used up a lot of credit from the amount that is available to you, it is sure to bring down your credit score. A good idea to reverse this situation and bring down the credit ratio to less than 15 percent, is to pay off at least a part of the debt, request the provider to increase the credit limit if possible, cut back on spending from your credit card and keep paying your bills throughout the month.

Establish credit accounts with suppliers: If you have worked with the same credit providers over a period of time and share a good payment relationship, you can create an account with them to reflect positively on your payment credibility. They may even be willing to share your payment data with the credit reporting agencies, out of goodwill. This will drastically improve your credit score.

Follow up on discrepancies: In case there are any inconsistencies in your credit reports, like some credit provider who did not delete your negative account even after you paid, or any inaccurate negative feedback, make sure to follow up on it immediately and have the errors corrected.

With these easy steps and a little diligence, you can easily improve your credit score to secure more financing and maintain the health of your business.