With the rising inflation and high-interest rates, maintaining your business credit score can be tricky. A low business credit score can be frustrating and become a roadblock to your company’s growth.

Want to increase your business credit score? Firstly, you’ll have to learn about identifying the factors that can affect your score and think about ways to fix them.

Continue reading this blog to find out why your business might have a low score.

Missed Utility Payments

With the energy prices spike in the country, we understand that you might not have the budget to make timely payments. However, missed utility bill payments can be a massive problem because utility companies often report late payments to the credit bureaus. And, of course, late payments are bad for your credit score.

If you’ve missed any utility payments, the best thing to do is to catch up as soon as possible. You should also contact the utility company and explain your situation, as they may be willing to work with you to set up a payment plan.

You can also set up automatic payments to pay your bills on time. This will help improve your credit score and get your finances back on track.

An individual checking a bill

Delayed Debt Repayments

Delayed debt repayments are one of the primary factors that can damage your business credit score. If you have outstanding invoices or loans, this will reflect negatively on your score. Creditors and lenders won’t extend new lines of credit to your business if they see a history of late payments.

To improve your business credit score, you must make timely debt repayments. If you’re struggling to keep up with repayments, reach out to your creditors and try to negotiate a restructured debt repayment plan. Many private creditors are willing to work with businesses to create repayment plans that work for both parties.

High Level Of Debt

According to a survey conducted by the Statista Research Department, it’s estimated that fourteen percent of small and medium-scaled companies in the US had an outstanding debt of 50000-100,000 dollars in 2020.

The high levels of debt can damage their business credit. If your company has a lot of debt, it can signal lenders that you’re struggling to manage your finances.

Focus on paying down your debts and increasing your cash flow to improve your score. This will show lenders that you’re serious about getting your finances in order, and they’re more likely to extend credit to you in the future.

Previous Bankruptcies

Your business credit score could be low if your company filed for bankruptcy in the past. Bankruptcies stay on your credit report for up to ten years, so it’s important to keep this in mind when trying to improve your score.

If you’ve recently filed for bankruptcy, it will take some time and effort to improve your score, but it’s not impossible. You can do this by making all your payments on time, keeping your balances low, and using credit responsibly.

Minimal Credit History

If you’re a new business, lenders will be unwilling to extend credit to you because they don’t have a way to gauge your ability to repay the debt.

To build up your credit history, consider taking out a small loan from a bank or using a business credit card for everyday expenses. By making timely payments, you’ll demonstrate to lenders that you’re a responsible borrower and increase your chances of qualifying for loans in the future.

A lender analyzing a client’s credit history

Is Improving Credit Score Worth It?

It’s no secret that improving your business credit score can be time-consuming and requires financial expertise. Rather than spending an eternity trying to fix your credit scores to get bank loans, you can reach out to a private lending company that offers hard money loans. Private hard money lenders use your existing property as collateral, and they can help companies with low credit scores acquire exceptional loan deals.

Multiple hundred dollar notes

Excellent Hard Money Loan Deals Available With Swift Approvals

Struggling to get financing with a low business credit score? Consider visiting First Nations Finance LLC. We provide hard money loans to clients in fifty US states regardless of their credit scores.

We’ve been helping clients manage their financial troubles for over thirty years. We offer multiple alternatives like construction financing, land loans, mixed-use lending, industrial property loans in Dallas.

So, what are you waiting for? Reach out to the representatives at First Nations Finance LLC for more details about their hard money lending services in the US.



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