11/04/2022
Building Business Credit. *PART 3*
Business credit is a company’s ability to buy something now & pay later. Establishing a good business credit profile, makes it easier to borrow money when your company needs it.
Here are some ways to build your business credit;
Building & maintaining your score
While this may take time, there are tools you can use to build up your business credit. The number one thing you can do is to pay your bills on time. Payment history is the single most important factor in any credit report, accounting for least half of your business credit scores. One late payment can affect your score.
Setting up automatic payments to ensure you don’t miss a payment can go a long way toward perfecting the health of your business credit. Meanwhile, paying your bills early can, in some cases, help to raise your score. The D & B PAYDEX® scores, takes early payments into account when calculating your business credit rating.
Once you’ve got a plan in place to build up your business credit, you need to be sure to monitor your credit score, checking for things such as fraud & identity theft. While you can freeze your personal credit, this doesn't exists for business credit. Check your business credit at least once a month so that you can catch any activity early.
Creating business credit takes time with hard work & attention to detail, any business owner can build a strong credit profile & gain countless benefits to help any business grow & succeed.
In addition to opening lines of credit, good business credit can also extend your trade credit terms with suppliers, giving you more time to pay for products & services.
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