When you’re first getting started, the need for business credit doesn’t seem urgent. But in order to get financing when your business is ready, you’ll need to pay attention to your business credit report.
Here are five things you can do to stay on top of your business credit.
- Make sure your information is correct with the credit bureaus.
Business credit is similar to personal credit in that errors can occur. You’ll have to regularly check your credit to ensure accuracy. Make an annual check with the credit agencies.
- Establish credit with your vendors.
Check to make sure these vendors report payments to the credit bureaus, because as you pay on time, your credit score will get a boost. Dun & Bradstreet requires three or more trade lines to score on your payment history.
- Make payments on time.
The biggest part of your business credit score is making payments on time or early. You can’t get a perfect score with Dun & Bradstreet unless you pay early. It pays to keep up with your payments.
- Use lenders that report to credit bureaus.
Most banks do report to the credit bureaus, but if you’re using another lender, check to make sure your credit will be reported. Some companies don’t. When you do need a loan, you want to make sure repayment counts toward your business credit.
- Keep your public records clean.
Bankruptcies, judgments and liensw ill count against your business credit score. Work hard to avoid having these items filed under your business name. Work with your creditors to avoid liens. Talk to business attorney about finding other options than bankruptcy.
Contact Monstera Lending Group for financing options to help your business credit score get a boost. We can help you take your business to the next level when you’re ready to grow.