Posts Tagged ‘improve credit’

5 Ways To Raise Your Business Credit Score.

5 Ways To Raise Your Business Credit Score

If you run a business than you know how hard the process can be.  One way to make running a business easier is to develop a strategy for raising your business credit score.  Having a better business credit rating can help you get lower interest rates on loans, expand the number of vendors who will be willing to do business with you and give your business more working capital in order to launch new products or to expand your business for growth.

1.  Order A Commercial Credit Report For Your Business.

Knowing is half the battle and if you’re going to raise your business credit score, you have to know what information is contained on your business credit report.  There are various companies that offer commercial credit reports and even credit monitoring services so you can always be aware of where your business stands.

2.  Separate Your Business Credit From Your Personal Credit.

Small business owners often make the mistake of intermingling their business finances with their personal finances.  You really need to make a concerted effort to separate these two as soon as possible.  Business credit reporting agencies want to know that your business is a separate entity that can stand on it’s own financially.

3.  Try To Deal With Vendors Who Report To Business Credit Agencies.

You may purchase through a vendor and think that, because you are spending lots of money and always pay your bill on time that your business credit score should be improving.  The truth is that only a small percent of vendors actually report to business credit agencies and you should always try to deal with vendors who do.  Ask your current vendors if they report your business transactions to the credit bureaus, and if not, ask them if they will start to do so.

4.  Build Your Credit By Applying For More Credit Accounts.

By no means do we want to encourage you to over-extend yourself, but if you have little to no credit accounts under your business name, then you really need to establish some in order to start raising your business credit score.  You could apply for business credit cards or a small business loan.

5.  Don’t Close Old Credit Accounts.

If you have past business credit accounts that you are no longer using, don’t be so quick to close them if they have been in good standing.  If you keep the accounts open, the positive reporting that you have accrued over the term of the business credit account will remain on your credit report, which can add a boost to your commercial credit report.