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4 Tips to Establish a Good Business Credit Score

Having a high business credit score is essential for a business as it helps determine its financial health. On the basis of this business credit score, lenders or banks sanction loans to enterprises. And a drop in your credit score shows your companyu2019s lack of creditworthiness. <br>@ https://creditq.in/page/credit-information-report

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4 Tips to Establish a Good Business Credit Score

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  1. 4 Tips to Establish a Good Business Credit Score

  2. What is Business Credit Score? A business credit score tells about your company’s creditworthiness using factors like payment history, available credit and judgments like tax liens.

  3. Tips to Establish a Good Business Credit Score • Maintain a good payment history • Keep a lower credit balance  • Canceling old credit accounts is a big ‘NO’ • Don’t mix your personal and business finances

  4. Maintain a Good Payment History Try to pay all your debt on time as it will be assessed by your future lenders. Banks trust those people who don’t have a lot of overdue and are honest with their debt repayment. A high business credit score is one of the important indicators of the B2B solutions industry across the world. Make sure there’s always sufficient balance in your account as check bounces can push your credit score lower.

  5. Keep a Lower Credit Balance  Maintaining a lower credit balance is an ideal state to keep your credit score higher even when you are in a debt. This can be done by utilizing only 30% of your total credit amount.

  6. Canceling Old Credit Accounts is a Big ‘no’ Having an old credit account is an added advantage as it allows lenders to have a comprehensive view of your payment history. An old credit account is a sign of stability and trust that suppliers have in you. It comes across as more authentic and reliable than the new accounts.

  7. Don’t Mix Your Personal and Business Finances Try to keep a separate business account and don’t merge it with your personal one as it can complicate things. Separate accounts allow you to manage finances in a better way. Your business credit card should pay only for your working capital and not your household expenses. It gives a negative impact on your lenders and will make assessment difficult.

  8. Address: 3/31, Chitrakoot Marg, Arpit Nagar, Vaishali Nagar, Jaipur, Rajasthan 302021 Mob: +91 724-000-0901 Email: support@creditq.in Website: https://creditq.in GET IN TOUCH Thank You

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