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9 Ways To Improve Your Business Credit Score

Author: Sameer Tendulkar
by Sameer Tendulkar
Posted: Jan 24, 2018

A good credit score is necessary for maintaining and enhancing the growth of the business. The business credit score is very similar to personal credit score for both the individual and the businesses, the governmental credit checking authority measures the creditworthiness. This credit is determined through the calculation of various factors, such as outstanding balances, payment history, and so on. The higher credit score figure, the better your credit score would be. As mentioned earlier, a credit score can be vital for your business and due to this reason, you should take steps to improve your credit score.

In this article, I will share with you 9 ways of improving your credit score:

  1. Take the assistance of a service that can provide you with an accurate company credit report.
  2. Try to maintain a positive trend in the payment record; this can be done by giving your complete effort in paying your invoices right at the time.

3. You must try to file your annual returns right on time. This step is important because an untimely returns filing might be perceived as a sign of financial burden by the credit bureau in India.

  1. If you have recently started a small business or a start-up then it is advisable to maintain the proper credit of your personal finances too. This is because, in absence of company score, agencies might focus on your personal score since it serves as the most reliable indicator of your company's commercial integrity. You can begin personal credit management by asking your personal credit score from the agency that provides your company credit score.
  2. In addition to getting your company credit report, you should take a step further by registering your business at a credit reference directory. Such a step will keep you visible and this visibility will most likely boost your company's credit.
  3. You can also enhance your credit score by adding a partner who has a good credit score and who has a history of success in business ventures.
  4. Be sure to once in a while check the company credit score of your suppliers. Such a step will keep you aware of the dangers in the future and give you time to prepare for it.
  5. You should check your company credit score on a frequent basis so that any undesirable point can be rectified immediately.
  6. Resolve all your liens, bankruptcies, and court judgment.
CRIF High Mark is a leading credit information bureau in India, that caters to the need of borrowers from different segments ranging from MSME to microfinance borrowers. It has built the world's largest Microfinance Bureau Database.
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Author: Sameer Tendulkar

Sameer Tendulkar

Member since: Feb 22, 2015
Published articles: 502

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