Have you built up business credit?
Managing your money is the key to a successful, profitable business. With the statistic that 9 out of 10 startups will fail, it’s important to pay attention when it comes to your income and expenses!
If you don’t know how to manage your money, it’s time to learn, and that starts with credit management.
Take a look at our guide to managing credit to make sure your business stays afloat.
What is Business Credit?
Everyone has a personal credit score. It keeps track of your financial responsibility, especially when it comes to debt and mortgages. Your business credit score is just the same.
Business credit looks at your financial records to determine whether you’re a reliable company to lend money too. As a small business, you’ll know the importance of having access to loans, and your business credit could be vital to your survival.
Your credit is calculated using various factors, including bankruptcies, outstanding payments on loans, and business size.
Credit Management Tips
To keep your business in the clear and make sure you can get loans when you need them, it’s important you know a thing or two about business credit management. Here are some tips for building yours.
Start a Business Credit File
If you’re ready to start building your credit, create a credit file with D&B by applying for a D-U-N-S number. If you realize you already have a credit file when applying, review the information in yours. Modify anything that’s incorrect to make sure that people looking at your business credit can make accurate decisions.
Build Your Busines Credit History
When starting your business, it’s a good idea to start building your credit by putting expenses on a business account. Use a credit card to pay for your bills and initial expenses. This credit card management is an easy way to start building up your credit history.
Pay Your Bills On Time
When it comes to how to manage credit, the number one way to build yours up positively is by paying your bills on time. If you have monthly payments on credit cards or loans, set up direct debits to make sure you don’t forget to pay. Make sure not to exhaust your monthly expenses before paying your debt by putting money aside at the start of every month for it.
Monthly Installment Loans
Just like a credit card, you can use monthly installment loans to build up your credit score. Click to learn more and find out valuable credit management tips.
Create a Successful Business
Credit management is just the first step to building a financially savvy business. Make sure you start to build up your credit score as soon as possible and be clever with your loans.
If you enjoyed this article, be sure to check out more on our website! We write across a range of business topics, including tax tips and insurance help, making sure you give your small business the best start.