Establishing and managing business credit can help your company secure financing when you need it, and with better terms. Business credit can be crucial for negotiating supply agreements and protecting against business identity theft.
These five steps can lay the groundwork to sound financial planning.
Determine whether you have business credit on file with Dun & Bradstreet
Establish a business credit history by using lines of credit associated with your business
Pay bills on time and understand other factors that influence your credit rating
Keep your credit files current and monitor for ratings changes
Know your customers’ and vendors’ credit standing
Knowing your customers’ credit standing gives you a window into consumer patterns, and that can affect your marketing and sales strategy. You may not need to conduct credit checks, but there are credit evaluation tools available for small business. Customer behavior also impacts your business’s cash flow, which affects planning for future supplies, hiring employees, and expanding your business.
Are Small Business Development Counselors can help you evaluate your credit book an appointment today!