As a fledgling new business, you probably aren’t thinking about your business credit score. Once your business gets going and you realize that lenders are using your business credit report to give you financing deals and insurance rates. If you haven’t paid attention to your business credit, then you might not be getting good deals. Here are four tips to increase your business credit score.
Monitor Your Credit Reports
Mistakes and errors occur on your business credit report and can affect your score. At least once a year, order your business report from the main credit reporting agencies and check for discrepancies. Report errors. Look for open accounts that you didn’t open. It could be fraud.
Use Credit Wisely
A business credit card can help you establish credit as a business, but you need to pay your bills on time. Don’t use your credit card to shift debt from one place to the other. If you do take out a loan, have a plan on how you will use the money and how you will pay it back.
Instead of relying on credit to finance your business, find ways to reduce costs to keep your budget in line with your income. Use your extra income to pay off debt. Don’t spend all of your profits. Try to save some money each month to have a cushion when you need it.
Pay Your Bills
Make payments on time or early. Use autopay when possible to keep from forgetting to pay. If your cash flow makes it difficult to set up autopayments, pay manually, but keep good records to avoid missing a deadline.
Your business credit score is an asset to your business. Do the right things to maintain your credit score. Contact Affinity Capital Funding for information about financing your small business.