Keep It Checked
You’re familiar with your credit. You know how to check your score, look for problems, what to do, and not to do, to keep it as high as possible but what about your business credit? Business credit is one of the largest assets that a business
owner has, and most owners don’t even use it that much. With good business credit, you can buy just about anything you want for your business – new trucks for the service department, new computer system for the office, or a bigger building for everyone. Yet, most people aren’t sure what business credit is and even more importantly don’t know why it’s important to the life of your business.
Similarity Of Business Credit And Personal Credit
Business credit is similar to your personal credit, but instead of belonging to an individual, it belongs to a business entity. And, just like your personal credit, your score can determine everything from what type of car you can buy to the rates on your insurance. So, keeping your business credit in good shape is just as important as keeping up your personal credit.
Turn Into Positive Credit
Keeping your business credit positive isn’t hard at all. There are plenty of things that you can do to ensure that you’re business’ credit will be consistent (and improve). Here are a few tips:
1. Make sure that your payments are made on time, every time. When you make payments on time each and every month, that creditor will report to the credit bureaus and your credit will start to climb.
2. Request that your creditors report to all three major credit bureaus. This will help to keep your credit score current with all three and there will be no hiccups or problems if one creditor checks any of them.
3. When you are making your monthly payments, pay more than the minimum amount due. This will help to increase your available credit and will show that you want to pay your accounts off.
4. Keep your accounts receivable department on track. For example, if you have net 30 terms, have them begin calling customers two days before their bills are due. This will help ensure that your receivables come in on time and allow you to pay your bills on time.
5. Keep your credit or collection department on track. For example, have them run a daily report and call each one of the customers listed about their past due payment. Keeping on top of outstanding bills will ensure that you know when you’ll be paid.
6. Watch your scores. Check your business’ credit scores often to ensure that there are no fraudulent posts or anything that needs to be changed or taken off. If you find something wrong, dispute it right away so your business credit won’t be damaged.
7. Don’t overextend your credit or your payments. It’s easy to get a new business line of credit somewhere and go nuts. But, remember that whatever you spend, you must repay so exhausting your credit in one shot won’t help you any, and you never know when you might need that credit for an emergency.
8. Start small and work your way up. Most new businesses don’t immediately start off with millions of dollars in available credit, so don’t fret too much if you can only get a couple of small credit cards and a couple of lines of credit in a business supply shop or other store in town. Make your payments on time each month, and you’ll see your credit grow.
Remember to keep a careful watch on your business’ credit and treat it as a top priority. Know what should and shouldn’t be on your business credit so you can keep on top of the score and help boost your credit at every chance. Taking action to keep a positive credit score will save your business money on interest rates, loans, insurance, and many other areas. So, take your business’ credit seriously and treat it right.
Trust the grand ambassadors in business loans and business financing . For more information about our business cash advances and business loan alternatives, please call Merchant Advisors at 1-800-870-7622 or visit www.onlinecheck.com