Most business owners are well aware of how important it can be to have a good business credit score because it will impact whether or not you can obtain business loans. That makes it very important for you to understand the means by which you can improve your business credit score, and get to the level where lending institutions will look favorably on your loan applications.
Repairing a Bad Business Credit Score
There are a number of steps you can take to repair your business credit score if it is less than desirable. The first thing you can do is contact suppliers and lenders to try and negotiate a reduction of your repayment options. Many of your creditors will be willing to do this, as an alternative to having you go bankrupt or default on any existing loans.
At the same time that you’re restoring a business credit score, you should be working to improve your actual business finances, by channeling profits into debt reduction. Get in touch with all your creditors and ask them to report to the credit bureaus whenever you have paid off an account, and when you’ve made timely payments on your current accounts. One last possibility is to take out a debt consolidation loan, which will make it easier to get your business back on track and restore your business credit score.
Removing Negative or Inaccurate Credit Lines
There’s always a chance that the transaction lines appearing on your business credit bureau report are inaccurate, or that they should have been removed sometime in the past when you paid off a loan. It can help your business credit score immensely if you contact the credit bureau to have these items removed when it’s justified. This means you should also pay attention to your business credit report so that you know when false or negative detail lines appear and should be removed.
Is your business credit score preventing you from obtaining loans?
We like to take the approach that a business credit score is not necessarily a true reflection of your business potential and that it should not be the sole determinant of whether you should be provided with the cash you need. Contact us at Norris Commercial Capital to find out if we can help your small business acquire the funding you need to accomplish your goals.