Healthy credit ratings open doors for businesses that include better financing and extra sources of working capital. However, sometimes businesses experience special circumstances where they need to rebuild their credit ratings, and new businesses may not have the credit history to get the financing they need. Fortunately, there are a few tried and true methods to build credit ratings for both new and established business so entrepreneurs can get the funding they need.
Debt Consolidation
It’s almost impossible to launch or grow a business without taking out loans. Most businesses are juggling debt from multiple loans, each with different terms and interest rates. The first step to improving credit ratings and streamlining payments is to consolidate debt into one manageable loan with better interest.
Regularly Review Credit Reports
Many entrepreneurs only go over their business credit reports when they are about to apply for financing. Business credit reports should be reviewed monthly or quarterly to see if there are any lingering outstanding balances, and to make sure any settled accounts are no longer showing up. Keep in mind that any changes made to your business credit report will be reflected in the following month.
Talk to Suppliers
Suppliers will often extend a line of credit to businesses that make regular purchases to help offset expenses. Before taking a line of credit, talk to your vendors and ask if they send information to credit agencies. Maintaining a good record of purchases and timely payments can help build business credit scores quickly.
Unsecured Business Lines of Credit
Unsecured business lines of credit provide a source of working capital without requiring any collateral. Additionally, new and small businesses can access unsecured lines of credit, so they can create a credit history by using capital and then repaying the balance. Unsecured lines of credit provide a necessary and reliable source of financing, and can be used as a springboard to larger funding programs.
At Nanaki Capital, we provide unsecured business lines of credit, as well as a wide range of debt-free financing alternatives. Contact our offices today to get the funding your business needs.
