As we’ve previously discussed, few factors are as important when it comes to accessing small business financing as your business credit score. In fact, both your personal and your business credit scores are some of the first things that lenders look at when you apply for a loan on behalf of your business. So what can you do to give those scores a boost – and earn your lending profile some extra muscle as a result?
1) Dispute any negative charges
Many find – to their own disbelief – that their credit score is negatively affected by charges they did not incur, or by charges that are more than 7 years old (and thus shouldn’t have an effect on their credit score.) For this reason, all business owners should be reviewing their credit reports regularly, and investigating and disputing any charges that don’t hold water. One of the most important parts of building a strong credit score is ensuring your score has been verified accurately.
2) Make your payments – as many as possible
If you want to make positive movements in regards to your credit score, all your past-due payments need to be made. If you’re carrying around delinquent charges, then your score will be taking hits regularly as a result. To build a strong credit score, you need strong payment data – and you can earn it by making all of your payments on time.
3) Don’t max out your cards
If you’re making use of all your available credit, then your score will take a hit as a result – so the less that you charge to your cards or business, the better off your score will be. This is yet another way to get your credit score looking as attractive as possible – which, in turn, will make your business look much more attractive to lenders, both at banks and non-bank lenders like OnDeck.