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- iHaveNet.com: Small Business Guide
Small Business Money Matters
Credit-reporting agencies track the creditworthiness of businesses like yours to help suppliers and lenders make decisions about which companies to do business with. These agencies collect data for reports from banks, retailers, government records, and other sources.
Potential suppliers and financial institutions may use your company's credit rating to determine how likely you are to pay your debts. The strength of your rating can impact the payment terms that vendors grant you and interest rates that banks apply to your business loans.
Keeping your credit report in tip-top shape is smart for business.
Use the advice below to protect and improve your company's credit rating:
Review your credit report regularly
Obtain a copy of your credit report on a regular basis and review it thoroughly.
Look for errors, old accounts that are still listed as active, and other inconsistencies. Be sure key supplier relationships appear. By regularly reviewing your report, you can feel confident that anyone evaluating your company will receive accurate information.
Update credit details
If you find that information on your report is dated or missing, take steps to make it current.
For example, if your report lists a dated figure for your company's annual revenues, report the new amount to the agency that issued the report. Likewise, if your report is missing data from credit relationships that are in good standing, contact the creditors and ask them to report your performance to credit bureaus.
Fix credit report mistakes
If you find errors in your report, contact the credit-reporting agency to discuss how to correct them.
Submit fixes in writing and include your business name and tax identification number on all correspondence. Forward copies of any documents you have that support your side of disputed items, saving the originals in your files. If an error on your report is the result of a creditor's reporting mistake, contact the vendor and politely request that it remove the mark from your record.
Pay bills on time
Paying bills by their due dates will positively impact your credit standing.
Timely payments reflect a history of responsible financial management.
Apply for secured credit
Banks are unlikely to grant unsecured loans to companies with shaky credit histories.
But getting a loan that is secured with collateral can be a way to demonstrate creditworthiness. As you begin to pay back the loan responsibly, you will be building a stronger credit history. Be extremely careful not to overextend your use of secured credit. Doing so could result in losing the collateral to the lender.
Small Business Guide
- Starting Up Your Business
- Coming Up With a Winning Business Idea
- Common Startup Mistakes
- The New Rules for Startups
- Business Incubator FAQs
- Naming Your Business
- Researching Your Business
- Your Personal Savings
- Registration, Licenses, and Permits
- Getting a Tax ID Number
- Fast-Growth Startup Resources
- Structuring Your Business
- Overview: Corporations
- State Offices of Incorporation
- Incorporate Out of State?
- Writing a Partnership Agreement
- Choosing a Board of Directors
- Basics of a C Corporation
- Basics of an S Corporation
- Basics of an LLC
- Basics of a Sole Proprietorship
- Basics of a Non-Profit Corporation
- Basics of a Professional Corporation
- Basics of a General Partnership
- Basics of a Limited Partnership
- Your Company's Public Relations
- Elements of a Successful Public Relations Campaign
- How to Use Your Press Coverage Effectively
- Press Releases
- How to Write a Successful Press Release
- Sample Product/Service Press Release
- Sample Commentary Press Release
- Sample Event Press Release
- Sample Tips Press Release
- Sample Personnel Press Release
- Effective Competitive Analysis
- Managing Purchasing to Maximize Cash Flow
- Top Six Pricing Mistakes Businesses Make
- How to Avoid Lowering Your Prices
- Bidding Basics
- Hiring Staff
- Creating an Effective Job Description
- Do You Know How to Pick Them?
- Little-Known Hiring Resources
- Classifying Contract Workers
- Tips for Successful Interviewing
- What You Can't Ask in a Job Interview
- New Hire Paperwork
- Small Business Insurance
- Types of Insurance for Small Businesses
- Small Business Insurance FAQs
- Insurance Resources for Small Businesses
- Home Office Insurance: Myths & Realities
- Small Business Resources
- Government Resources for Small Business on the Web
- Resources for Women Entrepreneurs
- Fast-Growth Startup Resources
- Small Business Security Resources
- Taking Time Off
- Your Pre-Vacation Checklist
- How to Take a Vacation
- Learning to Delegate
- Getting Away When You Can't Get Away
- Preparing for Tax Season
- Year-End Planning Tax Savers
- 10 Ways to Pay Less in Tax
- 25 Common Business Deductions and Expenses
- Avoid These Common Errors and Audit Triggers
- Understanding the Home Office Deduction
- Corporate Income Taxes Primer
- Employment Taxes Primer
- Sales Tax Primer
- Sole Proprietorships and Partnerships Tax Primer
- How to Get a Filing Extension
- Year-End Reconciliation
- Getting the Most from Your Accountant
- Developing Accurate Financial Projections
- Cash Flow
- 10 Ways to Help Increase Your Cash Flow
- Cash vs Accrual Accounting
- Bookkeeping and Record Keeping Basics
- Quick Ways to Get Through a Cash Crunch
- Projecting Cash Flow
- Cash Flow Triage
- Getting Funding
- Cash Flow Through Factoring
- Small Business Investment Corporations (SBIC)
- Traditional Funding Sources
- Non-Traditional Funding Sources
- Your Company's Credit
- How to Read a Business Credit Report
- Credit Terms Glossary for Your Small Business
- How to Protect and Improve Your Business Credit Rating
- Give Your Business the Financing Edge
- Employee Compensation
- Employee Benefits
- Bonuses: How To Be Fair
- Workers' Compensation Q&A
- Keeping Workers' Compensation Costs Down
- Payroll Management Choices
- Key Elements of Payroll
- Working with a Payroll Service Provider
- How to Create a Business Plan
Small Business Money Matters - How to Protect and Improve Your Business Credit Rating
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