3 Important Steps to Build a Business's Credit Rating

You may not be able to get a guarantee that  your business's credit score will increase, but there are steps that you can take to ensure that your business credit is always being reflected in the best light possible and not need the help of a lease co signer to rent an apartment. Here are three steps that will help you continuously improve its rating.

Check Your Report Regularly

You probably already check your personal credit rating at least once a year. It is a good idea to do the same thing with your business's credit. If possible, sign up for a subscription service that will allow you to see all changes to your professional credit report as often as you like. Subscriptions are available from the major credit bureaus like Experian. 

When you look at your report, be sure all the information contained is accurate and current. With professional building of business credit reports , you can also see if any other companies or institutions have been viewing your profile. 

Pay Your Creditors Promptly

You will see your payment history reflected on your report. The more incidences you have of timely payments to creditors, the better your credit rating will be. In fact, the overall business score is largely determined on past payment history. 

If your business has had a spotty history of making on-time payments, do whatever you can to improve this. With a subscription service that allows you to view your report often, you can track progress of your improved payment habits. This should help you stay motivated to paying bills on time so one day you are in a strong position to rent a Ferrari with ease if you'd like with no problem.

Understand Your Score

Personal credit scores range from 300 to 850. A business credit score also has a range. However, business scores range from zero to 100. A zero represents a company that is a high risk and 100 represents a company with excellent credit like a baseball uniform store

These scores are developed by taking into consideration the number of trade experiences your company has, its payment history, its utilization of credit, and its size together with other demographics.

When you understand what goes into your business's credit score, you can take control over improving its rating. If you have judgments or liens of record, do what you can to pay them off or settle them with the original creditor in order to have them removed. 

Do not borrow more than your business can afford to pay back. Keep working at building better credit ratings by paying your bills on time, every month.