Improving Your Business Credit Ratings In 5 Steps
Business credit ratings play a big part in the success of your company. A good rating will determine your being approved for loans and lines of credit, which will help you to grow and expand your business. Improving your rating can be done through taking these 5 important steps.
Get Your DUNS Number
Dun & Bradstreet, Inc. is the leading company providing credit history data for businesses. If you want to build your rating, you’ll need to sign up with a reporting agency like D&B to get your DUNS number. This will allow other businesses and customers to view your history and progress. You can also apply for the Credit Builder program through D&B, which allows you to report on business with smaller vendors not involved with D&B.
Manage Your Business Credit
Once you have applied for your lines of credit, it is important to actively use them so you can build a positive history. Since your credit history will be accessible to others, you’ll want a report that will encourage confident business dealings. If you are a new business asking for a credit line, it will be helpful to find a company that is involved with a major reporting agency. The history you create with them will help attract new opportunities in the future.
It is important to watch over your business credit ratings once you get going. Check your score frequently to make sure you catch any errors. If you do notice inconsistencies, let your reporting agency know to get them corrected. Also, check out ways that you can get a free credit report to help stay organized.
Separate Business and Personal Credit
While it can sometimes seem like your personal identity revolves around your business, make sure you keep them differentiated. Your growing business should be listed as an LLC or corporation, and not based on your own personal credit. This would only apply if your business is not a partnership sole proprietorship, but for the most part you should be able to keep your accounts separate.
Uphold Your Good Name
Having good business ratings should be easy if you are consistently making payments on time. It should be a priority to keep this up so that your business can continue to grow. Opportunities will be presented if you have a reliable rating and good business plan.
Your credit history reveals a lot about your business as a whole. Make sure you take the proper steps to improve your rating, and work with companies that will also serve your best interests.