Your business credit score … do you know what it is?
You need doors to open to you as you work to build your business. A bad business credit score is like a slamming door when trying to get a good insurance rate or better financing terms. But a good score? THAT is like a wide open door, just waiting for you to walk through it.
Oddly enough, many business owners pay little attention to the importance of managing the business credit well. Little do they know the opportunities they may be missing by not paying close attention to the details of their business credit score.
1. Pay Bills On Time
Yes. We agree. No brainer. So, why remind you?
Because business owners drop this ball all the time underestimating the damage it can do. And often, there’s not really a reasonable explanation for it. Maybe it’s simply a lack of organization or a less than streamlined approach to managing the bills.
One strategy is to set up auto-pay on any bills that you can. This not only simplifies your life, but keeps at least some of your bills on track without the extra work.
2. Use a Business Credit Card
Establish business credit and manage it well by using a credit card that is not linked to you personally. And our advice here is nothing you’ve not heard before: Pay it off each month if possible or pay the most you can pay.
3. Pay Attention to Your Partner’s Credit
For those in business with a partner, you need to keep an eye on each others credit. Accountability is a powerful motivator to stay organized and up-to-date.
Think of a positive business credit score as an open door to greater business opportunities.
Image courtesy of David Castillo Dominici,/ FreeDigitalPhotos.net