Did you know that according to the National Federation of Independent Business, 46 percent of business owners banking with small financial institutions are finding it more difficult to obtain credit than last year? In addition, many business borrowers are being turned down based on their credit scores.
Navigating the financial world only gets easier with better credit and it isn’t as hard as you think to boost your score. Check out these five easy tips for improving your business’s credit score..
1. Update your credit scores with different bureaus
Unlike personal credit scores, business scores are not necessarily streamlined. NerdWallet explains that several credit bureaus will collect data on your business, each using different calculations and reporting different types of data. While you may stick to checking a certain credit bureau, your creditors may check another. Maintain all your profiles to cover your bases.
2. Ensure you’re making payments on-time
If you can make payments on-time over a long period of time, it will benefit your overall score. Better yet, make your payments early and strive for a perfect or near-perfect score.
According to credit bureau Dun & Bradstreet, if you’re the owner of an emerging or small business, your company may not have a strong credit profile yet. This means that prospective creditors may review your consumer credit profile as a supplemental evaluation method. While they won’t completely rely on your personal ratings, your score can still impact your company’s creditworthiness.
Sometimes issues or errors can come up that you aren’t aware of, hurting your score. Keeping an eye on your credit report on a regular basis can help you catch and correct these before damage is done.
Perhaps the most simple and self-explanatory tip, paying off debt is important for your credit score. Entrepreneur cites business credit expert Liz Weston saying, “The most powerful thing you can do to improve your credit score is to reduce your credit utilization.” Before you take on new expenses, take care of your debt.
If you’re applying for a lease with Tiger Leasing or any leasing company, your credit score will be a crucial component of your acceptance. Learn more about credit scores and our quick and easy lease approval process, contact a Tiger Leasing representative today.