How To Improve Your Business Credit

You can improve your business’s creditworthiness by taking the following steps:

1. Pay your bills on time. The payment experiences other companies have with you greatly impacts your FICO score. For this reason you should always pay within your suppliers terms. This is the best way to drive a positive credit rating.

 2. Ensure that all your trade references are reflected on your credit report. If you pay your references on a timely basis you certainly want this information to be reflected on your report. Check your business report twice a year to make sure all your trade reference experiences are being reported.

3. Keep your personal finances up to date as well. The way in which you manage your consumer credit can impact your company’s creditworthiness, especially if your a corporate officer or owner.

4. Review your business credit report for mistakes. Sometimes accounts that aren’t yours can show up. Reports can also reflect false or negative activity relating to your bank accounts. You should always address these inaccuracies.

5. Try to keep your debt limits down. If your business report reflects alot of debt on your balance sheet, lenders may be less likely to extend credit to you as you would appear to pose a greater risk of default.