Whether you’re launching a new startup, expanding your product line, or hoping to enter a new market, the success of your venture might depend on having a positive business credit profile. Lenders, potential business partners, and even some vendors will probably check your company’s credit reputation before going into business with you, so it pays to keep an eye on your score. Below are a few tips for maintaining a solid business credit profile.
3 Tips for Improving Your Business Credit Score
1. Get a Copy of Your Report
For a small fee, Dun & Bradstreet, Equifax, and Experian will provide a copy of your business credit profile, which will give you the information you need to start building your score. For instance, you’ll be able to see which accounts are working against you and find any mistakes that could be dragging your score down.
2. Make On-Time Payments
Your debt payment history has a huge impact on your credit score, so getting your bills in on time is the easiest way to build a reliable reputation. If you have a habit of forgetting, automating your business credit card or equipment loan payments will bring your credit score back up over time.
3. Increase the Amount of Available Credit
Creditors are generally wary of businesses who use a significant portion of the credit available, so try to keep your debt utilization under 15%. Paying down outstanding debts is an effective way to start, but you might also try opening a new line of credit to improve your debt utilization ratio. If you do open a new account, however, it’s important not to use it, or you could wind up bringing your score back down.
If you’re working on building your business credit profile, You're Approved in Melville, NY, offers expert consultation services at your fingertips. Over the years, they’ve worked with companies from across the country, providing detailed advice and customized credit restoration strategies. Visit their website for more on their services and expertise, get more credit tips on Facebook, or call (631) 683-3303 to get started today.