If you run a small business, or even a large company, you know that there are near-countless important cogs that keep the entire machine running smoothly, including your business credit score. A good score can make expanding your office easier, purchasing equipment less expensive, and so on. A bad score can do just the opposite, dragging you down each step of the way, or even threatening the future of your business. To get back on track after taking a hit to your business credit, you need to start thinking about how to rebuild it right away.
Here’s five smart tips to help you rebuild your business credit:
- Review: As with any issue that can affect your business, you cannot make improvements to your credit score until you know the extent of the problem. Get copies of your credit score from Dun & Bradstreet, Experian, and Equifax – these are the three firms that regularly track and report on business credit – and review each of them. All three should be identical since they are about your singular credit score. Any discrepancies could expose an issue that has unjustly hurt your credit.
- Pay: Having no debt as a small business would be unusual. Having a heavy amount of debt is unfortunate and will shred your credit score if it lasts too long. Do your best to start paying off your worst debts and bringing them to a more manageable level. You might even want to consider consolidating your debt through groups that offer this service.
- Negotiate: Creditors will get nothing from you if your business goes under and you file for bankruptcy. Any creditor that is putting you in a hard situation due to intense interest or heavy debt amount should be contacted to see if you can negotiate better terms. You might be surprised with the cooperation you can get from them sometimes.
- Seal: Old credit accounts that you no longer need should be sealed up and eventually closed. The longer they remain open, the more likely you are going to get dinged by some outlying transaction on them. It might be possible to combine credit lines if you are sourcing them from one group or bank, making it easier for you to keep track of your obligations.
- Discuss: Most anyone that deals regularly with your business and collects payments from you – think third-party vendors, suppliers, and partners – can help improve your business credit,if they know to report on you. Do you have a solid history of meeting payments with a particular vendor? Ask them to do you a favor and let your creditors know you have been fiscally responsible, at least to them.
One More Hint to Help You On Your Way
For businesses struggling to restore their business credit, the thought of pursuing new loans might be intimidating. It is important to realize that getting a new loan and paying it off in accordance to its terms can be a boon for your business credit score. This benefit is on top of whatever advantages the loan will already afford you, such as replacing old office equipment or finishing a project that required careful financing.Green Ocean Solutions is a reputable Los Angeles business loan office that offers smart, fair, and flexible conditions to all sorts of loan options. Please feel free to contact us to discuss a loan that your business needs and how it can ultimately benefit your credit score.