Business Credit Rating

Working on your business credit rating is extremely important to the overall health of your organization. Without a business credit rating, it will be next to impossible to secure the financing you need to purchase new equipment, machinery, raw goods, and other things. You will find that you cannot accept credit card payments from your customers and you won’t be able to establish partnerships.

Your business credit rating is the only way to show lenders and investors that you are a legitimate business and people need to take you seriously. This allows you to lease equipment that is necessary for your business to grow and progress. What do you need to do in order to start building your corporate credit? Here are some tips that will help:

1. List your business with credit profiling firms.

2. Maintain and update your business credit profile. This includes basic information about the business like your address, phone number, etc.

3. Monitor your business credit report. Check with your vendors to see that they are reporting information in a timely manner.

4. Check the credit profiles of your customers before offering credit card financing.

Your business credit rating is different from your personal credit rating. Duns and Bradstreet is in charge of determining the creditworthiness of your business. It is their job to acquire the information from your vendors and properly report it. Acquire a DUNS number from them and you can actually have your business listed and use Duns and Bradstreet as a credit reference.

Growing businesses need to rely on their business credit rating. A missing pieces or information or a piece of information that is reported incorrectly can have serious consequences on your report. You need to know what is in your report and to make sure it’s correct in order to gain the right credibility you are looking for.

To build your business credit, you can utilize services that will help. A business credit consulting service can offer you various methods to build your credit in a hurry. The downside is that you will need to pay for their services, sometimes costing your business over $2,000. For this price, make sure you are researching the right lender to work with and that their services are actually worth it.

Watch the clients you work with. Make sure they are low-risk to your business and that they can help you generate decent income and new leads for your business.

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