Why should you put in so much effort to build your credit score? A high credit score not only attracts customers but also secures investors and gives you better access to affordable small business loans. So how can you enjoy these benefits? This article will cover all the ways that you can build your credit scores with!
1. Make sure your credit looks good
Anything you do to improve your credit score or credit history will automatically improve your business's credit. Paying off all your old debts will make your credit report look very good and enables you to acquire loans easily. Payments made on time show that you are responsible and dependable.
2. Applying for Small Business Loans
Another way to build your credit is to keep taking out small loans regularly. Traditional loans are much easier to acquire when your credit score is perfect.
3. Associate your company with a credit reporting agency
To track your credit is equally important. To do that you will have to register your company with a credit reporting agency using the corporation's Employer Identification Number (EIN/).
4. Use a business credit card
Using your business credit card consistently and making regular payments is an efficient way to establish quick credit histories that experience quicker progress.
5. Build friendly relations with your suppliers and vendors
Your suppliers and vendors are a vital part of the smooth functioning of your business. Maintain friendly relations with them can enable you to enjoy inventory space or services without having to pay hefty payments in advance. When vendors report your payment details to the credit reporting agency, your business credit score is bound to increase.
6. Keep your credit report in check
We’re human. We make mistakes. So do credit reporting agencies. An incomplete or incorrect data can have a huge negative impact. If you regularly monitor your credit report, you will be able to rectify any mistakes, and hence your credit score will go the only way it should go –upwards.
7. Keep your personal and business finances separate
This is a significant step in increasing your business credit score. Keep these finances separate will keep your possessions safe in case of financial trouble. This way, the investors, and suppliers will also take you more seriously.
Follow these steps, and your business credit score is going to rise!
If your business is in need of funds to build your credit, First Union is here to help. We offer small business loans. Call today!