Credit scores are as important for businesses as it is for individuals. An organization’s credit score determines its creditworthiness and ability to pay back the credit. A poor credit score means results in loan rejections from lenders. If ever your organization were in a financial crunch and required financing, it would be incredibly difficult to secure. Lenders that do eventually give you a chance would only do so on a high interest rate. It’s therefore important for an organization to work on their credit score and maintain it at all times.
Here are some ways to improve credit score:
Check your credit report
Your organization’s credit report is a summary of your credit score. It lists the information provided by lenders and creditors, inquiry information, identification information, public records, etc. While most people assume that everything mentioned on their credit report is accurate, there’s a risk of inaccuracies. Some common mistakes that occur on credit reports include:
- Reporting a closed account as open
- Accounts incorrectly reported as late or delinquent
- A certain debt listed twice
- Account balance errors
- Including incorrect information after it was corrected
It’s therefore crucial to thoroughly go through your business’s credit report to ensure all information stated is correct. If you do find mistakes and negative items still listed, you can dispute the entries to have them removed.
Pay expenses on time
A major component of a credit report is payment history. Defaulting on payments of paying past the due date massively impact your credit score. Make it a point to have all expenses paid on time. Set standing orders so that all expenses are paid out of the business account automatically on the stated date.
Only apply for loans when you’re certain of an approval
Loan applications and other applications for credit also affect your company’s credit rating. Only apply for loans and credit when you are certain it will be approved. Loan applications and loan application rejections reflect poorly on your credit score.
Global Capital Partners Fund is a leading private lender based in NYC with over 3 decades of experience in the industry. They provide a variety of commercial financing solutions that range from hard money loans to asset-based lending in Florida, North Carolina, South Carolina, Texas, and Georgia. The company also offer bridge financing, which is used for a variety of property types including retail shopping centers, mixed-use properties, multi-family commercial buildings, hotels, warehouses, office buildings, etc. Get in touch with their representatives at +1-800-514-7350 or firstname.lastname@example.org.