3 Ways to Stay Smart about Credit
With a few simple steps, you can establish and maintain a positive profile. Here are 3 ways to stay smart about credit:
Stay on top of your profile.If you don't have a profile, contact Dun & Bradstreet, which maintains credit files on businesses. It assigns credit scores based on a wide range of factors, including revenue, location, number of employees, length of credit history, and type of industry. Lenders will use this information to determine your company's creditworthiness.
Pay your bills and pay them on time.Paying your obligations demonstrates that you have positive cash flow and the resources to cover your liabilities. Paying them on time means you're a diligent businessman and a good business risk. Paying late places your credit at risk and damages your reputation before potential lenders.
Limit your borrowing.How much and how often you borrow and how quickly you retire any debt impacts your credit. Short term and long term debt on your balance sheet can have a negative impact on your company's value and make you a lending risk.