Hacks to Build Better Business Credit

Hacks to Build Better Business Credit

One of the important tasks that owners of new companies face is building a good business credit profile. You will need this when you are applying for financing, obtaining property, working out terms with suppliers, and acquiring insurance. Here are some tips on how you can build favorable business credit.

Periodically Check Your Credit Reports

The first step in improving your business credit score is finding out what it is. To accomplish this, request credit reports from the major credit reporting companies of Experian, Equifax, and Dun & Bradstreet. As you work on building your score, it is beneficial to check your score monthly, or at least much more often than once a year.

Obtain a Credit Card

If you make responsible use of a business credit card, you can not only take care of some of your expenses such as equipment and supplies, but also build your credit score. If you reliably make payments on time, your credit history will improve. This will give you access to other forms of financing.

Work with the Right Vendors

Only some suppliers and vendors report to the business credit bureaus. Find out which do and work with them, and your on-time payments to vendors will help build your company’s business credit. If you have been using vendors that do not report, you can add this information concerning trade references by yourself.

Make Timely Payments

If you always make your payments on time, you will improve your business credit score. If you can manage to make early payments, you can give an extra boost to your Dun & Bradstreet Paydex score, which indicates to lenders the likelihood of your company paying its debts on time. This will open your small business to more funding possibilities, leading to further growth and prosperity.

For more advice on building better business credit, get in touch with Green Apple Funding.