Overcoming a Bad Credit Score is it possible?
If you’re a small business with a questionable credit score, are you stuck with bad credit forever? Not necessarily, so, rest easy. It is possible to improve and/or reverse bad credit and get your company back on track. Just keep in mind that improving your credit is not a quick process and patience is a must. Check out some of the suggestions below, as they can be quite helpful:
Pay Your Bills on Time
If you’ve experienced cash flow problems, as many small companies do. It has probably resulted in late payments or even missed payments. This does not bode well for your credit score! If this scenario sounds familiar, now is the time to take control of your bills. Do whatever is humanly possible to start paying your creditors on time. Whether it’s arranging your accounts payable function or taking out a consolidation loan to pay down the balances. If it’s truly impossible to do so, alert creditors to your situation and try to work out a solution. Since organizing your accounts payable role can significantly reduce the risk of delinquent payments, it’s also a good idea to initiate a system for managing upcoming invoices and payments.
Record Your Outstanding Debt
To know exactly where you stand debt-wise, it’s a good idea to itemize outstanding loan balances and credit card balances. Although it can be distressing to see the numbers, once you know the status, you can then start taking action to reduce the balances.
Know Your Business Credit Score
Also, Every business owner should know his or her credit score. Unlike personal credit, which has much higher scores, 76-100 is considered a good business credit score. Keep in mind that credit scores are based on a variety of circumstances such as, including payment history, outstanding balances, credit utilization, and size of your business.
Examine Your Credit Report
Knowing your credit score is not enough because it’s also important to know exactly what is in your credit report because it is basically a report card of your business. Reviewing the report can identify areas of success as well as trouble spots. This gives you the ability to build on the successes and rectify the trouble spots. It’s highly recommended to examine your credit report several times a year since every quarter is a good benchmark – and to dispute any inaccurate information that may negatively affect your credit score.
Ready to get started? National Advance Group can help with your financing and debt consolidation needs. National Advance Group helps to overcome bad credit!
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