Protect Your Financial Future by Repairing Credit
Repairing broken business credit isn’t easy. There are no quick fixes, and no shortcuts. The only reliable way to rebuild solid business credit is through disciplined debt management, financial planning, and timely payments of outstanding invoices.
In order to improve your credit, you will need to steadily accumulate a record of responsible debt management. This means paying bills on time, negotiating with creditors to expunge debt and improve the terms of your credit, and carefully monitoring your business’s credit report.
Improve Your Payment Practices
The single most effective way to improve your business credit score is to consistently pay your invoices on time. Fulfilling your payment obligations in full, and in advance of vendor expectations, will not only boost your score, but it will also help you to maintain strong relationships with your most important business partners.
If you are not certain whether your payments are being reported to the business credit bureaus, then it is in your best interest to call your creditors. This way, you can make sure that your future payments will be reported on a regular basis. Vendors and suppliers are not required by law to report payments to an agency, but many are happy to do so.
Make a Plan and Stick to It
Create a payment plan that will eliminate your outstanding debt as soon as possible. If possible, negotiate with your creditors to establish more favorable payment terms. Let your lenders know that you are absolutely committed to paying down your balance.
During this period, you will not be able to take on additional staff, purchase new equipment, or develop new products and services. That’s okay. Your top priority is paying off your debt in order to repair your reputation, and to raise your credit or PAYDEX® score.
In the long term, a strong public record of repayment is much more valuable than a small, temporary influx of capital, as the availability of affordable credit will allow your business to grow and thrive on your own terms.
Dun & Bradstreet offers several tools to help small business owners monitor and understand the information contained in their credit reports. CreditBuilder™ helps business owners track their reports in real time, monitor third-party requests for information, and correct reporting errors.
Remember, in the end, repairing credit is all about understanding credit. If you want to see your score increase, then using a tool such as CreditBuilder™ to keep tabs on your business is a necessary first step.