In operating your business, it is important to continuously check on your business’s financial performance. Knowing the performance of the financial side of your business leads you to understand your business credit.
What is Business Credit?
This is a credit that is reflected by your business credit score and determines your capacity to receive and return loans and meet financial obligations on time like paying utility bills, taxes, and invoices.
In building your business credit, you can improve your position in making loans for your business, and it also provides opportunities for you to secure finances and trade credits. Maintaining a good-to-excellent business credit also opens trust opportunities to lenders, vendors, and suppliers and should give you great emergency leverage for your business.
How can I know my business credit?
The simplest way to build and monitor your business credit is through Equifax Small Business Grade. All it takes is to sign up and fill in some information. You will immediately see your business credit score right away.
How can I improve a low business credit score?
The best way for your business credit to grow is to pay bills on time, repay loans within the repayment period, and manage your business expenses strategically. You can have a hard time borrowing with a low score, but increasing the business credit score will help you get approved the next time you apply for a business loan.