How to Repair Business Credit and Raise Your Score

The importance of good business credit

As a business owner, you probably know by now how important having a good business credit score can be. Having a low business credit score will impact how lenders work with you and may determine whether businesses will do business with you.

If you find a lender, high interest rates and fees will greatly hinder the success of your business. Having a poor business credit score can be a slippery slope, as interest rates rise, making it harder to repay debt while also making it difficult to grow the business without the necessary resources. It is therefore very important to know how to repair business credit and build your business credit, if your score is low.

How to Repair Business Credit

Here are the key steps you can take to repair your business credit and get back on track to making your business a successful one:

• Contact your lenders and try to negotiate a change to your repayment options. If you're having financial problems, many lenders would rather restructure your payments than receive little or nothing if your business goes bankrupt.
• It's important that you also focus on getting your business finances back on track while working to rebuild your credit. Dedicate as much of your profits as possible to paying off your debts.
• Contact your lenders and ask them to report all account closures and repayments to credit rating agencies. Even if they already do this, lenders are not required to do so. So it's always a good idea to check with them to make sure these positive actions are reported to help restore your business's credit.
• As a Hail Mary, you may want to consider a debt consolidation program. This is a long-term solution, which will make it easier to pay off debt and get back on track, but will take a long time. This option is better than bankruptcy, but again, it should be a last resort.

Keep in mind that once you've successfully paid off your outstanding debt or become back in good standing with your lenders, it's important to keep a close eye on your credit utilization. Once you've repaired your business credit, you don't want to ruin it again by accumulating excessive debt again.

Using your business credit is a good thing, but make sure you use it prudently. Just like consumer credit, with business credit you must maintain a low debt-to-credit limit ratio. In other words, regardless of your business credit limit, you should keep your balance at 50% or less.

Removing Negative Business Credit Reports

In many cases, repairing your business credit can be as simple as identifying negative items on your business credit report that were improperly filed or are completely false. Requesting these false and negative items from your business credit report can help significantly repair your business credit.

If you are a business owner struggling with bad credit and need help repair your business credit, contact Credit Absolute for proven business credit repair assistance. There is no reason for your business to suffer from false or incorrect credit reports.