6 Tips to Help Maintain a Positive Business Credit Rating.

6 Tips to Help Maintain a Positive Business Credit Rating.

6 Tips to Help Maintain a Positive Business Credit Rating.

A business credit report is an important issue when it comes to accessing finance and determining whether it is possible to obtain credit from banks or suppliers. A well-maintained credit record is sure to make it easier to grow a business in the future. Here are six tips to help maintain a positive company credit report:

Check the report.

Regular checks on a business credit report should help you stay up-to-date with changes and act effectively if problems arise. It's easy to purchase a personal or business report to check that the information is accurate and that you'll be able to repay the loan on time.

Correct the errors.

Check credit reports at regular intervals to ensure that no errors appear in the registered credit history. Any errors identified should be dealt with as soon as possible. Errors are corrected by contacting the company that compiled the data. Any request to change data on file will need to be backed up with financial documentation.

County Court Judgment (CCJ)

If a company files a country Court judgment for non-payment of an outstanding debt, it helps to pay in full within a 28-day period to avoid appearing on credit records. Any CCJ that is left unpaid will be marked on the credit history for a period of up to 6 years.

Keeping accounts up to date.

Limited company latest records are sure to help. Most reference agencies rely on data held at Companies House. Majority of lenders are not willing to provide credit to individuals registered with Companies House but not up to date with their accounts. Late filing of accounts can lead to difficulty in proving the creditworthiness of the Company.

Positive personal finance.

If a business is just starting out and there isn't much financial information about the company, lenders may want to take a closer look at personal finances. Therefore, those with a positive credit history regarding personal finance are more likely to get the desired credit approval.

Credit for business financing.

Avoid relying heavily on credit to start a business as it is not viewed in a positive light by lenders. Each time an application for credit is made, it is entered into the credit file. Multiple applications that are unsuccessful can make it more difficult to get credit in the future.