The Best Way to Improve Your Business Credit
Just like you have a personal credit score you’re likely working on improving and keeping as high as possible, you also have a business credit score you’ll do well to work on improving. To save yourself time, resources and maybe a bit of frustration, it’s good to know the most effective ways of boosting your business credit to fully realize your business potential.
Check to See If You Already Have a Credit File
Dun & Bradstreet Inc. is the entity in charge of commercial credit scores. Reach out to them online or through their customer service phone line to see whether they already have your business credit on file. If they don’t, apply for a D-U-N-S number, which is an ID number for your individual business. If D&B does have your file, ask for a copy and take a thorough look over it to ensure everything is accurate and up-to-date, much like you would for your personal credit report. In either case, you’ll want to check your credit file at least once or twice a year to better ensure it’s always accurate and current.
Know What Changes Your Score
Business owners should also be aware of what impacts the overall health of their credit score. Just like you would with your personal credit account, be sure to make payments on your business card either early or on time. You’ll also want to use your card wisely, and do your best not to use more of your line of credit than necessary.
Solidify a Business Credit History
Rather than use your personal credit card to build and sustain your business, use a business credit card instead. Not only is establishing a history good for your commercial credit score, you also don’t want to risk ruining your personal credit score for the sake of your business. There’s also the fact that it’s just a good idea to keep the two lines of credit separate from each other. You can start paying your commercial building utilities and rent with your commercial credit card to begin building a history.
Use Caution When It Comes to Consumer Credit
In addition to credit for your business, you may also offer credit to your customers or vendors. If you do, use the utmost level of caution when deciding whom to offer credit to. While you want to provide your vendors and customers with every opportunity to take advantage of your products or services, they might not be as responsible as you when it comes to paying credit back on time.
Make every effort to keep your company’s credit as high as possible. Put these tips to good use for your business and your peace of mind.