Business Credit Ratings: Improving Your Score To Open Opportunities
Business credit ratings are essential for everything from securing commercial space for a base of operations, on up to getting financing for large projects. For new and small businesses, it is imperative to build up credit ratings to open up opportunities which allow for growth. While entrepreneurs know business credit ratings are important, not many know how to go about improving those all-important numbers. We have put together a few strategies that every new and small business owners can use to improve business credit ratings.
Get A Copy Of Your Business Credit Report
Much like personal credit scores, every business has a credit report. Business credit ratings usually come into play when entrepreneurs are seeking small business loans. However, it is wise to keep up with your business credit report, at least on a monthly or quarterly basis. Credit reporting agencies are very large organizations, and errors do occasionally happen. Comb through your business credit report and follow up on any outstanding balances, especially if they linger well after they have been paid. Keep in mind that any changes you make to improve your business credit ratings are typically reflected a month later.
Choose Vendors Carefully
Many vendors offer customer credit, but not all vendors send their information to credit reporting agencies. If you want to build your business credit ratings, choose a vendor who is partnered with a credit reporting agency. By doing this, your purchases and payments will go a long way toward improving credit ratings, which will open up doors to business lines of credit.
Speaking Of Lines Of Credit
Not all business lines of credit are created equal. From the time a business is registered with an EIN, offers start flooding in with “special introductory offers” on business lines of credit. Most lines of credit for new businesses have low spending limits, and the interest rates skyrocket after the first few months. Ultimately, these lines of credit can negatively impact business credit ratings in a very short period of time. Fortunately, there are special programs for new businesses which are designed to not only provide affordable lines of credit with excellent spending limits, but also promote growth and improve credit ratings.
Learn More About Improving Your Business Credit Ratings
BG Capital Funding Group offers lines of credit for new businesses, as well as financing solutions which are not dependent on credit ratings. Contact our offices today to put our knowledge and experience to work for you.