How to improve credit score for your small business

Credit Cards Guide

As a business, any time you apply for a loan or other financing product, a cautious lender will most certainly consider 2 things to determine whether you’ll qualify for their services – your business credit score & your business credit report. They’ll also use these parameters to decide on the interest rate and the terms offered to you. To have a good credit score, you need to have a sound credit history and the best credit history is one with regular repayments but for repayments, you need to have a credit account – which brings us back to square one. Our article here will discuss how you can break through the cycle of credit and pedal your way to a great credit score!

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1. Register your business:

The very first step to getting a business credit score is to legalize and register your business.

2. Use a credit card to fund your credit history:

Every lender leans on your credit score while deciding whether to lend you a loan or not and for a good credit score, you need to have a decent credit history.

3. Keep personal credit score as a backup:

Small businesses are often driven by sole proprietors – which means there is no separation between the owner and their business.

4. Work with vendors who report payments:

If there’s a way for you to know, use vendors that will report your payments to the business credit bureaus.

5. Monitor your business credit reports

Get into the habit of checking your company credit report & credit score at least a few times a year. By regularly checking them, you are aware & in control of your finances.

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