Steps to Success
If you have a small business, you are virtually guaranteed to have some type of financing or credit line, as very few businesses get off the ground with cash on hand during the startup phase.
With the economy still reeling from the Great Recession of 2008, both small- and large-scale lenders have become much more careful about who they lend their money to. Fortunately, business credit reporting agencies are always refining how they calculate business credit scores.
Greater accuracy means in your business credit report can mean more access to credit for small businesses, so before you head out to apply for that new small-business loan, be sure to set yourself up for the best chance at success. Getting your head around a business credit “lay of the land” is the first step.
Establish a Baseline, Project for the Future
In order to know where you’re going, you have to know where you’re starting from. Because lenders primarily use a business’s credit score and history to determine credibility, you have to know what they are seeing. Once you have obtained your business credit score, it’s time to start thinking about ways to improve it. After all, a successful business isn’t built overnight—despite what the brightly colored business books promise.
Next, set goals to improve your business’s credibility. Where would you like your business to be in 6 months, 1 year, 2 years out? Resources like CreditBuilderTM from Dun & Bradstreet can help improve a small-business credit file so you can meet your goals. This may ultimately save you money along the way through lower interest rates, and more competitive lending terms.
Everyone knows that you’re busy running your business. With a strong business credit report in hand, you can help control your credit destiny. Go to lenders and let them fight over you. Armed with the credit knowledge you need, you’ll maintain both the upper hand and improve your business’s bottom line.