Having a good business credit score is invaluable these days. Credit scores help suppliers and lenders predict whether a business owner will pay his/her bills on time. Here are a few ways property owners and real estate investors can take control over their business credit and give it a boost:
Apply for New Business Accounts with Vendors
Obviously, a business owner’s creditworthiness will allow him/her to obtain business loans at better interest rates. Often, real estate investors and property owners have trouble obtaining enough credit information to receive a credit score. The reason this happens is because smaller vendors usually do not report trade references to the major credit agencies.
You can overcome this obstacle by establishing business accounts with Fortune 500 suppliers. These suppliers are known to report activity to credit agencies. Just make sure you limit the amount of new accounts you open. If you open too many at one time, it could raise a red flag and cause problems with your credit.
Monitor Your Credit Regularly
Make sure you monitor the details on your business credit report and check for any mistakes or inconsistencies. Experian, Dun & Bradstreet and Equifax are places where you can gain access to your credit report. The smallest mistake on your credit report could ruin your credit score. If you find any discrepancies, correct them immediately.
Pay Commercial Credit Cards and Loans on Time
Always pay your loans and credit cards on time to avoid lowering your credit score. If you are behind in any of your payments, make sure you communicate with your vendors, suppliers or creditors. Once you have paid off any outstanding balances, request to have an update sent out to the credit bureaus.
Lastly, keep your business and personal account separate. If your business plummets and your financing is set up under your personal name, you may have no other choice than to file for bankruptcy ‘under your name’. As a result, this can wreak havoc on your credit report and remain on it for up to 10-years.
The point here is you want to make sure you guard your credit. As a result, it will be much easier to get approved for the loans when you need to help fuel your business.