Maintaining a good business credit score is essential for the goodwill of the business. A lot depends on an impressive commercial credit score. You enjoy financial stability and a good market rapport. Your lenders are happy to offer you further credit, and investors may consider you a serious business entity.
With that said, maintaining a credit score and company CIR requires time and patience. You have to do the right things that add up to making your business credit score impressive. How does one get there? Let’s find out.
Pay Your Dues on Time
When you can pay your EMIs on time, it reflects your effort that you are serious about growing your business. Your suppliers remain happy with your kind gesture and are willing to help you in times of need.
Many credit information bureaus like CreditQ issue business credit reports and Commercial CIBIL Score of several businesses. It has got vital information about your business which helps them prepare your credit report and score. So, when you don’t delay or miss payments, your commercial credit score starts to improve.
Avoid Taking Extra Credit
We understand a growing business needs cash. The easiest way to fund your business is to take credit from lenders. It’s not harmful until you’re able to pay your dues on time. However, developing a habit of taking credit for the smallest things can lead to debts. Yes. You may find yourself in a cash crunch. Besides, it can impact your credit score negatively. Therefore, take credit as and when needed.
Keep Your Expenses Under Control
Another way you can improve your commercial credit score is by keeping your business expenses under control. If you buy unwanted office equipment and stock inventory without forecasting sales, you may end up incurring the cost. That’s why make it a point to check your business expenses, and if you think you’re going wrong somewhere, track it and stop it then and there.
Keep Your Credit Utilization Ratio Low
Your company CIR matters a lot for the goodwill of your business. A good business credit score can change the game altogether. So, if you can utilize your credit limit effectively, you gain financial credibility. If you have taken credit of INR1,00,000, make sure you use half of it and keep the remaining half for emergencies.
Check Your Business Credit Report Regularly
The best way to improve your commercial credit score is to check your credit report regularly. When you review your company CIR, you can find out a lot about your financial habits. It consists of your payment history, credit history, tax liens, bankruptcy information, etc. It can provide you with a clear picture of your strengths and weaknesses.
Work With The Suppliers Who Report to Credit Bureaus
If you want to improve your commercial credit score, you must establish credit accounts with suppliers who report to credit bureaus. This way, a positive payment move can help you aim for a high credit score. It means if you have been regular in paying your suppliers, you can maintain a good business credit report and score.
