Building Good Business Credit

In September 28, 2016

It’s no secret that many small businesses have less-than-stellar credit. Because of this, many such companies must rely on alternative sources of funding when they need to finance a project, stay afloat during tough times, or turn the dream of expansion into a reality.

Unfortunately, alternative sources of funding sometimes come with higher interest rates or other conditions that makes them less favorable than the traditional bank loans that would be an option if credit were no issue. Moreover, some small businesses have such trouble with credit that they are unable to find funding at all in some circumstances.

Whatever your company’s case may be, you do stand to benefit from improving your company’s credit. Here are a few of the most important ways you can do that.

  • Pay all Bills, Invoices, and Debts On Time. Nothing will damage your credit faster than failing to do this. Early payment can sometimes give an additional boost, so if you are highly confident that you can make such payments without any negative impact, then by all means do.
  • Avoid Mingling Personal and Business Finances. This is bad for both your personal and professional credit, and it puts you at personal liability.
  • Get a Business Credit Card. This is related to the last point, but it is also worth pointing out that business credit cards often offer additional perks that make them especially worth it.
  • Speak with Vendors about reporting to a business credit bureau. If they do this, you can be building credit with each transaction.
  • Keep records clean. Any kind of blemish on your company’s record or financial history can hurt your credit–from failing to comply with regulations to falling into financial delinquency

Focus on the things that matter. HR management can be a very demanding task–and, should you commit mistakes, the ramifications for your company (and your company’s reputation) can be serious. That’s why business owners should consider outsourcing their HR to experts. Visit Precise Payroll online today to learn more about how we can help.

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