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5 Easy Ways to Manage Your Business Credit Profile

Published By Nikeya Williams at August 5th, 2017

As a business owner, managing your business credit profile can be hard to maintain with the everyday nuances of running a business. But it’s important that your business stays up-to-date on what’s happening with the financial status, corporate filings and any additional records that may be associated with your company.

Managing your business credit profile ensures that all your corporate information is accurately recorded in credit bureaus such as Equifax, Experian and Dun & Bradstreet. Most of the time, lenders, banks, and credit card issuers will use your business credit report found through the three major credit bureaus to determine your creditworthiness.

Having a positive business credit profile gives your business the financial stability and security that you need to build a thriving and established business. Lenders are more likely to lend money on a lower interest rate to a company that demonstrates that they are responsible and can repay debts on time.

To better manage your business credit profile and stay up-to-date on all the new updates on your business credit, use these tips:

  1. Build a solid business credit profile: You’ll want to build a solid business credit profile, and you can do this by having a strong business credit rating. Moreover, a strong business credit is a healthy combination of all credit types reported in your business credit profile. You have to make sure to keep your debt-to-reporting credit limit ratio low, you don’t want your business to have the appearance of looking overextended to potential creditors or lenders.
    Strong Business Credit Rating: Building a strong credit rating starts by paying your invoices and debts on time. One of the most important details to building a strong credit rating is to make sure that your business has strong business credit reporting with Equifax Small Business, Corporate Experian, and Dun and Bradstreet.
  1. Monitor your business credit reports: Don’t forget to monitor your business credit reports. It’s important that you’re monitoring your business credit reports. You’ll want to avoid any unpleasant surprises that can pop-up on your credit report. For starters, you’ll want to make sure that you’re reviewing your business credit report with a potential lender before the lender pulls a hard copy of your file. Also, you’ll want to keep a close eye on anything that looks unusual on your credit report. Ultimately, you want to protect your business against theft and fraud, it can cause problems with your creditors and suppliers. Lastly, don’t forget to look for negative items that might show up on your business credit report, and if you have some negative items show up, you’ll want to take the proper steps to quickly correct them.
  1. Become a trade exchange partner: It’s a good idea to become a trade exchange partner, which means that as you’re extending credit to consumers and other business, you’ll want to share your payment data to your consumer and business credit bureaus. Sharing this information will reduce the chance of customers sending late payments, defaults and improve collections.
  1. Use prepaid business credit cards: You can use prepaid business credit cards to have more control over your business finances. The best way to avoid high-interest rates and late fees is to use a prepaid business credit card. The benefit of the prepaid business card is that since it’s a prepaid card, none of the traditional credit card costs come with having it. You also have the ability to set spending limits, and this is a great help if you’re handing out company credit cards for employees to use.
  1. Sign up for alerts: Make sure that you sign up for alerts from creditors. When you sign up for alerts, you’ll be notified by your creditor via text or email when there is a change in your company’s business credit files. If you want, you can also activate this same option for your personal credit. It never hurts to constantly monitor your personal credit.

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