If your company struggles with high interest rates, short payment cycles and limited credit, boosting your credit score is a clear-cut solution. By strengthening your business credit history, you build trust and gain access to low-cost financing. You may even slash the organization’s insurance premiums and earn flexibility when buying or leasing vehicles and commercial property. Use the following tips on how to increase your business credit score.
Banks and suppliers evaluate your credit worthiness with the help of three major business credit bureaus. The largest, Dun & Bradstreet, focuses primarily on vendor relationships. For example, if you miss a payment on your Net 30 Uline account, the Slip-up impacts your D&B Paydex score. On the other hand, Equifax’s Business Credit Risk Score concentrates on lending relationships, such as your commercial loan history with your lendor. Experian creates a corporate credit score based on both vendor and lender credit usage.
Despite the different scoring systems, you can take action to influence all three credit rating agencies. The U.S. Small Business Association recommends the following:
Inc. Magazine offers these additional ways to improve a small business credit score:
Increasing a credit score takes time, but the rewards are wroth the effort. By developing a stable business profile and using credit wisely, you can establish a strong small business credit score.