How Your Business Can Achieve a Strong Credit Score
Updated: Jan 3, 2021
Now that you understand the importance of maintaining a good business credit score, take time to form healthy financial habits. Without monitoring your business’s finances, you won’t be able to improve or maintain your score.
Pay Bills on Time: Make it a priority to pay bills in-full and on-time. By doing that, credit bureaus will see that you’re responsibly managing your finances, which will reflect in your business’s credit score.
Reduce Existing Debt: It can be challenging, but to improve your score, you’ll need to focus on fulfilling your financial obligations. That means paying off your business’s credit card debt, repaying your vendors, and getting rid of any other outstanding balances.
Check Your Scores Frequently: Set a reminder in your phone or write a note in your planner to periodically check your credit. Reviewing your credit report will help you recognize any mistakes or issues.
Handle Tax Liens: If you’re issued a tax lien, it can have serious repercussions on your credit. Due to this, you should pay your tax lien in full as soon as possible. In addition, you may want to pursue subordination or a withdrawal, which can help you remove the tax lien from your public records.
Conclusion: Make Your Business Credit History a Priority
Overall, it’s evident that there are many benefits to having a strong business credit score. Whether you own a new business or a well-established operation, it’s important to build your that credit score so that you can pursue business success for years to come.