5 Steps to Repair Business Credit Score for Small Businesses

1
5 Steps to Repair Business Credit Score for Small
Businesses

• Buena Credito

2

• Business credit is not the same as personal
  credit in that it indicates a companys financial
  obligation. There are three major business credit
  reporting bureaus, with credit ratings ranging
  from one to one hundred and one to three hundred.
• These agencies gather information from your
  business credit cards, loan vendors, and other
  sources of financing (similar to a personal
  credit report). However, not all merchants record
  payment history to credit bureaus, and not all
  suppliers report to all three major bureaus. As a
  result, the exact rating and business credit
  score may differ from one bureau to the next.
• While the best way to repair business credit over
  time is to be patient, diligent, pay creditors on
  time, and remain on top of whats on your credit
  report, there are a few things you can do to
  improve your business credit score if its been
  damaged. Continue reading to learn five
  strategies for boosting your small business
  credit score.

3
5 Steps
4
Contact your creditors

• Dont be scared, to be honest contacting your
  creditors directly and discussing repayment
  choices may benefit your bottom line. To assist
  in reclaiming some of the payments, they may be
  able to change payment terms, suspend accounts,
  or even offer innovative settlements. Creditors
  are more willing to deal with you if youre
  making a good faith effort to repay your debt.

5
Pay bills on time or early

• Set up recurring payments through your bank or
  create calendar reminders to ensure that your
  utilities, vendors, and other accounts are paid
  on time each month. You need to know whats going
  on in order to control whats coming out. With
  internet resources like this free small company
  budget template, you can take charge of your
  entire financial well-being.

6
Get rid of your revolving credit card debt

• Maintain control of your revolving credit
  balance. Aim for a credit balance of about 20 to
  30 of your total credit limit. 1. If your
  business credit card has a 10,000 limit, this
  means you should strive for a balance of 2,500
  or less. In an ideal world, youd be able to pay
  off all of your debts.

7
Take care of any accounts that are past due

• Make an effort to reach a deal with any vendors
  or creditors with whom you have a past-due
  account. You might be able to get unfavorable
  marks on your business credit record deleted,
  though this isnt guaranteed. If a negative mark
  is removed from a businesss credit score, it may
  increase dramatically.

8
Increase your credit limit

• Check with your creditors to determine whether
  you qualify for a credit limit increase. As long
  as you dont just pile on more debt, this can
  help your credit utilization ratio. You may
  believe that canceling accounts will help you
  boost your business credit score doing so will
  actually harm your score.

9
Bottom Line

• Even though different kinds of data are used by
  business credit reporting organizations to get an
  extrapolated score, making a concerted effort to
  improve your overall creditworthiness can help
  your credit rating with all three major bureaus.
• Its easier to maintain good credit than it is to
  repair bad credit, so only borrow the money you
  can afford to repay and keep track of your
  business credit report. Allowing your companys
  bad credit to keep you from running a successful
  business is a mistake.

10
Contact us

• 511 W. Shaw 200 Fresno, California 93704
• (559)-777-2540
• contact_at_buena-credito.com
• https//buena-credito.com/