Sometimes, many of us find that our personal credit history isn’t as good as it can be. The same can hold true for a small business as well. Things get tight, we have a few hard months, and before we know it, our business credit is suffering.
While it can take time to fix — up to six months — there are things you can do if you find your need to repair your business credit. First, run your credit report and check it over for any potential errors or issues. It is not unusual to find errors or misinformation on credit reports. Therefore, its crucial to go through your report with a fine tooth comb. If you do find errors, alert the credit reporting agency and have them fixed.
As a business owner, you should make a concentrated effort to establish a good standing relationship with four or five key vendors. Pay those vendors on time or before the bill is due so you can use them as favorable credit references when needing to secure credit with other vendors. Also, establish a good relationship with your bank, i.e. no bounced checks or other credit problems.
Finally, consider establishing a business credit profile with Dun & Bradstreet. D&B will use your bank and vendor references and conduct an investigation to rate your business. They can then provide you with a D&B number that many vendors will ask for on your credit application. Most small businesses do not have a D&B number so having one will make you seem bigger than you actually are.« Return to all articles