Why managing your business credit score is more important than you may think.
One of the biggest challenges for startups and small businesses is that many have blank credit files.While it may be true that there’s nothing negative in there, there very well may be nothing positive, either. It’s just blank — and that’s a problem because an empty credit file is just as bad as having a bad credit file, according Erik Simon, director of marketing and communications for Dun & Bradstreet Credibility Corp, a business-credit monitoring service provider. “A blank credit file is to a bank like a blank resume would be to an employer,” he says.
The reason is so many different entities — from lenders to insurance companies to vendors — use that business-credit information to make decisions that can make or break a startup or even an established company. Just like your personal credit, a good credit rating can open the door for a business to borrow money, secure credit, get better payment terms or even obtain a contract.
So how do you go about establishing business credit? Simply pay your bills on time and start documenting examples of good payment history. That way, you’ll help your company boost its business credit scores.
…to read this article in full, visit leading US entrepreneurial resource, Entrepreneur.com.