If you are running a small business or are a C-level executive for a Fortune 500, access to credit and capital is one of your highest priorities.
That’s why it is so important to learn methods to increase your business credit score before you need a new bank loan or are looking to sell your business.
1. Review your business credit score via a credit reporting agency: You can use a 9 digit “D-U-N-S” number from Dun & Bradstreet (D&B) to monitor your credit score. Because there are many instances of errors on your business credit report, you should review the business credit score yearly and get all errors corrected. These errors can affect the interest and loan amount you may get from a bank for your business, and can be very costly.
2. Pay all bills on time: Make sure payments arrive a few days before the due date so you won’t incur any late charges. Whenever your payments are late your business credit score takes a hit. If you pay your vendors and bills consistently on or before the due date, this action could affect your score positively.
Just like you use a free credit score to help monitor your personal credit, you can improve your business credit score with careful controlled expenditure and careful financial planning.
If you are finding that your low business credit score is hurting the financial health of your business, following these two tips will greatly increase your access to capital and make your business a valuable and durable asset.