Business Corporate Credit

Business Corporate Credit: Tips & Strategies To Acquire It

Whether you’re an existing business or just starting out, business corporate credit can help give you access to capital and resources. Here’s what you need to know about how to get approved for corporate credit—from understanding business credit scoring to building a strong credit rating.

Improve Your Business Credit Score.

Your credit score is the most important factor eligible lenders will look at when you apply for business corporate credit. Make sure it’s strong by paying your bills on time, maintaining a low balance on all accounts, avoiding frequent inquiries, and monitoring your report for errors. This will not only increase your chances of being approved for corporate credit but also potentially get you lower interest rates.

Keep Your Accounts Well Managed and Up to Date.

Keeping your account current is essential in the business corporate credit process. Having up-to-date accounts shows potential lenders you’re responsible and mature with managing company money. Making sure payments are on time, keeping short terms accounts current, and paying off debt promptly helps build trust with lenders. That will go a long way in helping you qualify for corporate credit and be approved.

Establish and Maintain Good Payment History with Suppliers & Trade Partners.

Establishing and maintaining a good relationship with your suppliers and trade partners is important in the process of obtaining corporate business credit. Many lenders will require supplier references so that they can do a background check on your company’s creditworthiness. Make sure to make all payments on time, negotiate payables terms, and be mindful of how much you’re ordering from each supplier. This will increase your chance of approval as lenders will see that you don’t overextend yourself and are able to keep payments current.

Take Advantage of Business Tools Such as D&B, Equifax & Experian.

Utilizing business credit tools such as Dun & Bradstreet, Equifax, and Experian are essential when trying to build corporate credit. These tools help you understand what lenders will see when they pull your business’s information and can reveal any issues associated with your current financial standings. Furthermore, a good score with any of these tools can give you an advantage when applying for loans or financing from banks or other lenders. Take the time to research each of these companies and understand what measures need to be taken to maximize your chances at obtaining business credit.

Have a Solid Business Plan in Place When Applying for Credit Lines/Loans.

Before applying for corporate credit, you must have a solid business plan and strategy in place. Knowing the purpose of the loan or line of credit – such as for marketing, inventory, expansion, etc. – will ensure that all lenders see you as a serious business owner who has thought out what you need and how it will be used. Additionally, having financial paperwork ready to show lenders will strengthen your application and increase your chances of approval.