Improving credit scores can help you get better terms from your vendors or more easily secure a business loan for expansion. However, if you’ve struggled with paying bills on time or even had to file business bankruptcy, you may need professional credit counseling services to fix business credit for securing business loans.
At Credit Score Revival (CSR), we often have clients wondering how to fix their business credit for business loans. Business credit scores are similar to personal ones, and a poor one can have similar consequences. You’ll need to pull the credit report for your business and check each derogatory mark on it for accuracy, so you know where to start improving credit scores.
Your business credit score is established by paying your bills on time and demonstrating the creditworthiness of your business. When you apply for business loans, repay them on time and make sure you understand how to be compliant with the terms of all payments. You’ll also want to establish a line of credit if you’re just starting out to prove that you’re worthy for the lender to extend more credit, which can fix business credit.
If you’re a new business, or if you’re recovering from some financial hardships that have negatively affected your business credit, then you may need to start small. Vendors may be unwilling to extend credit unless you put down a deposit or may only take cash on delivery. To build your business score and fix business credit, make sure to make your payments on time and early, if possible. You may also wish to revisit your revolving open lines of credit, reducing them when possible.
Some businesses may think that there’s a shortcut for improving their business credit score, but fixing business credit often takes time, diligence, and patience. Keep your accounts open since the longevity of accounts, especially those in good standing, is one thing that can improve your credit score. Another way to fix business credit is to encourage your vendors to provide a trade reference for you to other suppliers (make sure that you’re not causing a conflict of interest with the vendor) and make sure to treat those new lines of credit carefully by paying your bills on time and not maxing out your credit limit. If you have past due accounts, call the creditors directly, and see what terms they’re willing to take to work out the debt. A past-due account remedied directly with a creditor looks better for your business credit score scale.
The business credit score scale is different from the personal one, and ranges from 1 to 100, with 100 being the best. The credit score indicates how likely a business is to remain solvent and pay its debts. While 80 is considered the cutoff for a good business credit score, even a score of 70 is decent. A professional credit service like CSR can help struggling businesses discover how to identify ways to improve their business credit score and apply for business loans.
At CSR, our Hershey, PA-based team of experts can find and fix just about anything on your business credit score, from small debts to bankruptcies and even home repair loans for bad credit. We can show you how to fix your business credit and improve the credit scores for your company to make you more eligible for business loans or to be more solvent. We service individuals from Philadelphia to Pittsburgh, including areas such as Chester, Hazelton, and Reading, PA. Give us a call today to see how the affordable credit building service from CSR can work for you!