If you don’t know by now, a business’s credit score measures its credit worthiness. It’s made up of several different factors and helps you to understand its financial position and the level of financial risk it can take on.
Your business’s credit score helps lenders, creditors, and suppliers to evaluate whether your business will pay its bills on time. So how do you improve this credit score? We’ll show you 5 steps that you can take to improve your business’s credit score.
1. Pay creditors on time
Your payment history or payment behavior will play a major role in determining your business credit score. Paying your bills on time is the easiest way to improve the credit score of your business
2. Check your business credit report regularly
By doing this, you are ensuring that all your business information is accurate and up-to-date. When you know your business’s credit score, you know what you are working with and what you need to improve.
3. Decrease your credit utilization ratio
This one is simple. Decrease your credit card spending, open a new line of credit even if you’re not using it, and increase your credit card limit, and pay off your balances. Choose the ones that suit you best and work from there.
4. Establish a credit account with suppliers
If you have a continuous relationship with a supplier and you also have an excellent payment history, then establish a credit account.
5. Pay for delete
If you have debt that went to collections, make sure they delete the negative account when you’ve cleared your debt. You must ask for it, or else it won’t be done.
Desmond Murray Jr. is the author and creator of the e-book/audiobook series ‘Rich Confidence’. To learn methods on credit visit www.richconfidenceintl.com.