As a business owner, you work hard every day to keep your business growing. But between dealing with vendors and customers, marketing your goods or services, and thinking about the next steps for your company, you may neglect to work on your business’ credit score.
Having a good business credit score is important because it enables you to get funding for expanding and developing your business. Generally, if you want to get a loan with a good rate, you must have a fairly decent credit score.
Here are a few quick tips to help you improve your business credit score:
1. Keep a positive payment history
One of the main things you can do to establish good business credit is to pay your business loans and credit card bills on time. Having a good history of consistent and timely repayment on your existing debt helps you build trust with future creditors. While late payments by a few days likely won’t impact your score negatively, it’s a good habit to get into making all payments before the due date. Plus, it will also help you avoid late fees and growing interest fees.
2. Pay off your debts as fast as possible
Paying off your debt fast is key to building good business credit. High debt levels mean your business has less breathing room if revenues and profits decrease. One way to keep your outstanding balances low is to make multiple payments per month, instead of waiting until you’ve reached the end of the month.
3. Ask to increase the credit available
Getting your credit limit increased could also help your business’ credit score. Asking your creditor for an increase on your credit limit could give your score a quick boost. The lower the percentage of your credit you use, the better your score will be.
4. Ask vendors to report business credit history
Make sure at least some of your suppliers report your transactions to the business credit bureaus. Vendors have no legal obligation to report this information to business credit bureaus. So, if it’s a smaller supplier, they may not report the information at all. If you want to establish credit, it’s up to you to make sure the supplier you work with reports your transaction information to the business credit bureaus.
To learn more about your business credit score, please contact Nevada Corporate Headquarters at 1-800-508-1729.