What Is Bad Business Credit And How Do You Improve It?
Your business credit, similar to personal credit, provides a snapshot of financial strength. Bad credit can create more than one headache for you. So, take action to improve your poor credit score with the help of the information below.
When Your Business Has Bad Credit
According to the Fair Isaac Corporation, the most popular credit reporting agency, scores above 650 speak of a fine credit history. Scores below 620 often make it challenging for merchants to enjoy favorable terms for financing.
As a rule, business funding providers take into account your business credit when figuring out whether you can qualify for financing. Business credit scores are based on several factors such as:
- Your time in business
- Lines of business credit you applied for and got approved for in the past several months
- Collections/tax liens against the business
- Payment history
In fact, you can get funding for your business and be eligible for other merchant services without major headaches if you turn to a reputable high risk payments specialist. To find one, you just need to work with a reliable merchant services comparison company in the U.S.
With a respectable payments expert, you can get the most trustworthy snapshot of merchant services providers at the time of writing.
How to Improve Your Bad Credit Score
Happily, there’re measure you can take to make the situation better:
- Never fail to check your credit report on a regular basis to make sure everything is OK there.
- Never be late on making your bill payments.
- Consider securing a business loan with a reliable alternative online lender and repay the money on time.
- Decrease credit usage and keep debt levels on the low.
- Establish a credit account with your suppliers and grow the number of positive payments to your file.
- Avoid closing off credit accounts and eliminating them from your credit.
- You can add trade references to your business’ credit file manually via the credit reporting agency.
- Never leave the errors and inquiries on your report in ignorance.
- Make sure the agency deletes the negative account from your credit report.
Business credit is vitally important to your company’s health and success. So, be proactive and take the right steps to improve your business credit score.
Author Bio: Payment industry guru BestPaymentProviders.com and Cofounder Taylor Cole is a passionate payments expert who understands the complex world of merchant accounts. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie in his backyard porch, as should all right thinking people.