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If you own a small business, the company's credit score will play a critical role in securing financing. Just as your personal score affects your ability to borrow money for major purchases like real estate and motor vehicles, the business’s score will influence how much the company can accrue in debt—and at what rate it must pay it back. Fortunately, there are a lot of ways to improve this score if it’s not as high as it should be. For example, if clients are past due, turning to a debt collection agency will ensure you receive their payments in time to pay your own lenders. Here are a few more ways to boost your business’s credit score. 

How to Build Your Company's Credit Score

1. Keep Personal Expenses Separate

From day one, it is essential to keep business and personal expenses separate. Over time, though, it’s not uncommon for small business owners to intermingle their expenses inadvertently or even purposely. Although it might make sense to do so in the moment—perhaps you had no choice but to put business expenses on a personal credit card, for example—doing so will impact both scores. Keeping such expenses separate, on the other hand, will protect both your personal and business creditworthiness. 

2. Pay All Bills on Time

debt collectionMany small businesses struggle with cash flow, especially during their first few years, which can make it challenging to meet their financial obligations. Paying all bills on time is essential for maintaining a decent credit score, though. Therefore, if any clients are past due, it is wise to commence with debt collection agency immediately. Otherwise, you could end up behind on your own obligations, which would result in a drop in the company's score. 

3. Review the Company’s Credit Report 

In a perfect world, credit reporting agencies would never make mistakes. In reality, though, errors can—and do—occur. For this reason, it is critical to review the business’ credit report periodically. If there are any mistakes on it, you can take the steps necessary to have them fixed. Otherwise, they could inhibit the company from securing the financing it needs to expand or remain fully operational.

 

If you have one or more clients who are behind on payments, turn to Joseph, Mann & Creed for help with debt collection, so you can protect your own bottom line. Based in Twinsburg, OH, this third-party collection agency is a global leader when it comes to obtaining past due payments. Since 2001, they have been helping companies of all sizes apply practical solutions and strategic negotiation strategies to recover what is rightfully theirs. Connect with them on LinkedIn, or visit their website to explore all of the debt collection services they provide. To schedule a consultation with someone on their team, call (216) 831-5626.

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