Credit is one of those necessary evils of owning a small business - it helps you get loans, purchase more stuff on credit, and just overall scores you as a good business for others to work with. But how can you build your score? Here are some tips on how to raise your credit score and set yourself up for success!
Pay Bills on Time
It’s a bit of a no-brainer, right? Keeping on track of your bill payments is key to keeping good credit - Late payments can have a significant negative impact on your credit score. Have a system for paying bills that works for you - whether it’s paying them immediately when you receive them, or setting aside an hour each week to pay bills.
Maintain Low Credit Utilization
Ironically, in order to raise your credit, you have to keep it down. Keep your credit card balances and credit utilization below 30% of your available credit - high balances can lower your credit score.
Establish Trade Lines
Build credit relationships with suppliers and vendors that report payment history to credit bureaus. This helps create a positive credit history for your business.
Monitor Credit Reports
Regularly review your business credit reports for accuracy and report any errors promptly. Monitoring your reports helps ensure that your credit information is up to date and correct.
Use Credit Education Resources
To learn more about credit and how to raise your score - and what that means for your business, learn more about it! Honeycomb has a new course called Honeyscore that teaches you how to raise your score!
Raising your credit score can help you grow your business!
When you’ve got an excellent credit score, it makes it way easier for you to make it through the credit analysis process that most lenders require of small businesses before they get a loan. Honeycomb Credit is one of those platforms - we vet all the small businesses that work with us so that we know you’re in a good position to take on our investment offerings. To learn more, fill out the form below.
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