If you’re a small business owner, you know just how important maintaining a good credit score is for your company. Especially if you need loans to improve your regular cash flow, your credit score can make a big difference in whether lenders are willing to work with you and which companies will partner with you. It can also impact smaller details like the interest rates and fees that come attached to your loans, and could even affect the amount of time it takes your company to pay off debt. Repairing your business credit score might sound like a daunting undertaking, but it doesn’t have to be! With a few simple steps, you can start improving your credit today. Take a look.
1. Start Paying Off Debt
If your business is carrying a lot of debt, it could be negatively impacting your credit score, especially if you’ve had missed or late payments in the past. If your finances permit, start putting as much profit into paying your debts off as you can. It’ll be a psychological burden off your shoulders, and your credit score could dramatically rise!
2. Negotiate With Your Lenders
Sometimes, talking with a lender in person can make all the difference, especially since building a personal relationship could make them more sympathetic to your situation. Instead of working through middlemen, try contacting your lenders directly and asking them if you could renegotiate your repayment terms. Much of the time, a lender will prefer restructuring your payments than getting nothing if you end up declaring bankruptcy.
3. Try Consolidating Your Debt
If short-term fixes aren’t for you, you may want to consider consolidating your debt. Consolidation means it may take longer to pay off but will make the payments easier to make, helping you to get your finances back on track.
4. Check Your Report for False Negative Items
Finally, it’s important to regularly check your credit report, since false negative items have sometimes been known to erroneously make their way onto these reports. If this is the case for you, simply requesting to have these items removed can immediately impact your credit score for the better. You shouldn’t have to suffer a bad score due to incorrect reporting!
Your business credit score is an essential metric that can give you access to lenders, partner companies, and better loans. Improving damaged credit can seem tough at first, but it doesn’t have to be! Simply follow these steps, and you’ll be well on your way to repairing your credit.