When economic times are tough, proper financial planning proves its worth! Experienced entrepreneurs know this and are ready to grab opportunities whenever they pop up. If you’re looking for for in , Select Capital Solutionscan easily help you obtain that. After all, the last thing you need in times of uncertainty is complications when applying for a credit line.
Separate credit scoring systems are used to monitor personal and business finances. Your personal-finance FICO score is based on your SSN code, while business credit scores such as the PAYDEX at Dunn & Bradstreet are based on your EIN code. These scores help financial institutions determine whether you’re a good candidate for financing. The better your score, the higher your chances are your funding will get approved, and the sweeter your conditions will be.
Count on Select Capital Solutionsto help you obtain your in with these 6 Golden Tips
Here are our 5 top tips and tricks on how to properly build solid business credit faster than anyone else so your business can develop to its full potential:
1. Start by putting your business on the map
Put yourself on the map by obtaining a listed directory business phone number and open a business bank account exclusively using your business name. These first two steps may seem simple and commonplace, but they will make sure you get taken seriously by your initial suppliers and business contacts. Making it easy to find you on social media and in business directories will instill trust in them.
2. Separate personal and business finances
We don’t like to repeat ourselves, but Select Capital Solutionscan’t stress this enough! Please keep your business and personal finances separate at all times. You would be amazed at how many start-up businesses sin against this capital rule of proper financial planning.
Apply for an Employer Identification Number or EIN and register yourself with Dunn & Bradstreet for a free D-U-N-S number. This is the surest way to separate your business and personal finances. If you can document to creditors that these two are separated and aren’t personally guaranteeing any financing, you won’t risk losing personal assets when satisfying a debt. The same goes for tax purposes. You can claim as many business tax deductions as you like, but you’ll have to document them as actual business costs for your accountant and at every audit.
3. Keep Your Suppliers Happy and Pay On Time – Or Even Before That!
Actively maintaining good relationships with your suppliers is of crucial importance to building a good business credit score. Be sure to check that they report your business interactions to all the credit control agencies, so your good behavior is rewarded. New suppliers will also be more lenient when allowing you N60 or N90 payment terms with a good score.
Another golden tip here is to pay your bills before the due date. Not only will your suppliers be extremely happy and file a positive credit report for your business, but it also often comes with extra rewards. Many companies offer surplus credit if you pay in this manner. This is a fireproof way to build your business credit score up even faster!
4. Keep tabs on your credit report
Actively investigate your credit report. Over 25% of businesses have reported finding irregularities on theirs and successfully contested them with the relevant credit control agency. Keeping an eye on these won’t harm your credit score, as they are based on a soft inquiry. By being vigilant, you’ll allow your business credit score to soar and flourish, benefiting your business overall.
5. Opening a New Account Won’t Hurt Your Credit Score
Whenever applying for a new credit card, a hard inquiry is registered in your credit report; this can’t be avoided. Only applying for financing that you’re sure to qualify for is therefore crucial. Your credit score will be slightly impacted upon application, but this is temporary, and your score will bounce back within a relatively short time. Certainly, don’t let this stop you from obtaining the proper credit for your business.
Select Capital Solutionshopes you understand the importance of having a good business credit score. Make building your business credit a priority by baking it into your business plan. If you’re looking to obtain for in , don’t hesitate to contact Select Capital Solutions. Our dedicated financial agents are ready to assist you.