A healthy business credit profile will allow you to apply for greater loans that can help you grow your business and offer improved services. Financial service providers are more likely to offer more substantial loans to businesses with strong credit ratings.
Why you should check your business credit standing
Your over business credit profile and its standing are reflective of how well your business performs, and can be the difference between prospective suppliers or clients choosing your company to do business with or going to your competitors.
Conducting regular credit checks
By choosing to conduct credit checks on your customers and suppliers, you can ensure that they are in good financial standing and will be able to pay you for your services. This is particularly important as it can minimise your credit risk by ensuring a steady flow of income.
This will allow you to avoid risky clients while giving you the flexibility to offer paying clients personalised payment terms that help ensure that you can meet the financial demands of both your own company and theirs.
- Keep up to date with both your personal and business credit profiles – a bad credit rating can be crippling financially.
- Understand what factors can impact on your credit score so that you can maintain a healthy credit record.
- Minimise risk by assessing the credit scores of all incoming customers and suppliers.
- Ask that your suppliers or clients keep you up-to-date on their ability to pay you – allowing payments to default is a quick way to negatively affect your own credit rating.