Every registered business has a credit score between 0 and 100. Your local mall, your favourite online shops and the tea party down the lane! A business credit score tells lenders, traders, and vendors essentially how trustworthy your company is. The score takes into account your financial history with investors, trade agreements and, importantly, loans given by banks and other institutions.

A good rule of thumb is always to aim for a business credit score higher than 80 on the scale. If you have a score between 80 and 100, you are very likely to be offered great loans and deals with traders. It also improves your business’ reputation in your industry, and sometimes even among customers, depending on what you offer. Nobody wants to work with a sketchy corporation.

Why should you improve your business’ credit score?

Having a high business credit is a lot more important than many businesses account for, especially on rainy days when large loans are crucial for the survival of a small, or even large, business. With a good credit score it is easier and faster to take out loans and agree on better deals with providers. Banks will charge much higher interest to a business that took out a loan with a credit score of 40 than a business with a credit score of 80. Because business credit is exclusively tied to your registered business instead of the directors, it is so important that you don’t overlook it, as it can seriously impact the growth of your company, and thereby your profits, further down the road.

How to improve your business’ credit score

Now that you are concerned about your business credit, you might feel an urge to check it constantly. Hear it from us, though – this is not necessary. If you are consistently keeping track of your credit score at least twice a year (which you can do through a plethora of reliable credit agencies), then it is easy to spot when a payment has been missed or unaccounted for, and set the situation straight. Be mindful of your business credit, check it sometimes, but most of all… make the utmost effort to be a trustworthy business!
Business credit may sound complicated, but it really isn’t. It is essentially built on an extremely simple pillar stone. It is a piece of advice that can single-handedly build and maintain a fantastic, strong credit score for your business. And you have probably heard it a million times before, but…

Pay loans back on time!

It really is the simplest way to build business credit. A late payment can damage your score, and in the same way, you can massively improve your score by paying back lenders and investors on time.

You should also aim to keep debt as low as possible, and where you cannot pay off any debt your business has accumulated, make it clear that you are putting effort towards paying the debt off. If you haven’t already, you should open a business bank account to keep your personal finances separate from your business’s finances. A terrible scenario would be that your personal finances negatively affects your business because you shared a bank account.

Keep your credit usage minimal, avoid closing accounts, and try to work only with trustworthy traders and vendors who themselves have high business credit, so that you can protect your business if anything happens to them.

How we can help you!

Building and maintaining good business credit is hard, and there is no avoiding it. It can be especially vexing if your business is struggling and you do not have any wiggle-room to pay off debts. Having a good business credit score can help you through hard times, and aid your business to prosper in the great times.

Our passion is making those great times of business prosperity closer – at minimal investment, hassle-free, and fast. With our extensive expertise in improving business credit and providing consultation to small businesses, we can help your company work towards improving your score, so you can take out loans more easily and sign better deals.