If you want your company to remain competitive in its industry, a high business credit score is essential. A strong credit score enables you to obtain financing that will otherwise be unavailable to you, and this in turn will lead to prosperity and growth. However, if your business credit score is low, don’t despair. Here are some strategies that can help you improve it.

Keep an Eye on Your Credit Report

Your business credit report is available from the credit reporting bureaus of Experian, Equifax, and Dun & Bradstreet. Finding out your current score will help you assess how much improvement is needed. Additionally, you can check if any inaccurate information is negatively impacting your score and have this information corrected.

Maintain a Low Credit Utilization Ratio

Your credit utilization ratio measures the relationship between the amount of credit you have available and the amount you are using. Ideally this ratio should be below 15 percent. Methods of achieving this include raising your credit limits, paying off existing debt, and cutting down on spending.

Make Timely Bill Payments

If you are late making payments on your bills, your business credit score will inevitably go down. One of the essential maxims of achieving good credit is always making your payments on time or early.

Leverage Supplier Credit

Establish credit with suppliers who report payments to the major credit agencies. Always pay on time so that your payment history remains positive. If your suppliers do not share data with credit reporting companies, you can enter these references manually.

Ensure Deletion of Negative Accounts

Your company may have had past experiences of debt that has gone to collection agencies. Before you pay debts such as these, obtain a guarantee from the agency that it will completely expunge the negative account from your payment history. It is necessary to specifically request this so that your past debt will not continue to bring down your business credit score.

For more advice on building up a high business credit score, get in touch with KMS Funding.