There are no quick ways to get 75 and above business credit scores, but there are definitely some ways by which it can be enhanced. It will indeed take some time, but it will be a good thing to apply for the growth of the business through an improved credit score for it. Not many entrepreneurs or business owners have patience, but it is certainly required for many endeavours.
There are seven steps deemed as essential for building and maintaining a great Business Credit Score. Read them below.
- Legal Company Structure: Any business has to be made legal entity to ensure business credit without a glitch. Formation of a corporation is advised with the assistance of a CPA. Without doing this, there is no going further.
- Registration with Credit Agencies for Business: Registering with credit agencies for business will create a business credit profile. This is essential to process the business credit because without a credit profile, no one will know how the business is performing.
- Meeting Requirements of Credit Market: Meeting all the necessary requirements is a must to get credit for a business. Any non-compliance can send red flag signals to both potential investor and credit bureaus.
- Small Credit Lines for Business: First finding the minimum of five vendors/suppliers to give small credit to run the business without any personal guarantee. Then having their payment experiences reported to the credit bureaus of business will assist in establishing a favourable report.
- Credit Cards for Business: Obtaining up to three or four business credit card which in no way are linked to the personal account of the business owner, will definitely impress the credit bureaus. If bills are paid on time.
- Loan Packages, Business Plans and Financial Statements: Such documents are frequently needed by multiple credit grantors for processing the loan application. Getting them ready beforehand and giving them immediately when the opportunity comes; would benefit.
- Debt Management: Always be a good money manager with Business Accounting. Ensuring that debt levels always go down, and no more debts happening; will give the business massive leverage.
Following the above seven steps, anyone business owner can establish a good reputation among the creditors, consumers and stakeholders. However, at no point of time, success should make the business owner miss any good opportunity by being over-confident.