We have all heard about personal credit scores and how they can affect our financial futures, but many people are unaware that their business has a credit score too. Building a good business credit score can help secure loans and agree payment terms with suppliers. Here at Commercial Domestic Investigations we know how important it is to have a good business credit score, we can even assist you with your credit reporting services. Here are some of our tips on how to build and maintain a good credit score.
If you plan to own, or currently own your own business then your personal credit score will be under review so a good score is crucial. Paying credit cards on time and in full is a good place to start whilst missing payments should be avoided. When applying for finance for your business, for example business loans, it is common practice to attain a personal guarantee so your personal line of credit will be under scrutiny. If you haven’t been in business very long, then you can always ask your partner(s) for help. Make sure that you sit down with them and review their credit score before speaking with a lender.
Make your business credit report a priority, it can easily be added to your routine and checking regularly will pick up any mistakes quickly. It is important to note however that unlike personal credit reports there is a charge for accessing your business credit report and this charge varies on the service that you use. Before accessing your report, ensure that you know how to understand and read your report. Check for any errors or out of date information and make sure that you rectify it, this will help avoid potential issues in the future.
A business credit card can be a great resource to help you stay organised, separate your expenses and help with your cash flow. Make sure that you make payments on time and avoid cards with high interest rates. Be sure to read the fine print when choosing your card as the same rules do not apply for personal and business credit cards.
Here at Commercial Domestic Investigations, we work with businesses of all sizes to help your business maintain positive cash flow, help business owners grow their business and provide the best advice available. If you need help with credit reporting contact us on 08444 159200 or email email@example.com.