Step 1: Understand the terrain. A business credit score is a measure of your business's creditworthiness. It's based on factors like payment history, credit utilization, length of credit history, and types of credit.
Step 2: Pay your bills on time. "The borrower is servant to the lender." Just as a borrower is beholden to their lender, a business that pays its bills on time is more likely to have a high credit score. Make sure to pay all your bills, including loans and credit cards, on time.
Step 3: Keep your credit utilization low. Credit utilization is the ratio of your current credit card balances to your credit limits. A lower ratio is better for your credit score. Try to keep your credit utilization below 30%.
Step 4: Establish a long credit history. "The glory of young men is their strength, but the splendor of old men is their gray hair." Just as age brings wisdom and respect, a longer credit history can improve your credit score. Keep your oldest credit accounts open to establish a long credit history.
Step 5: Diversify your credit. Having a mix of different types of credit, such as trade credit, credit cards, and loans, can improve your credit score.
Step 6: Monitor and adjust. "The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty." Regularly check your business credit report, correct any errors, and adjust your credit habits as needed.
Sellery's Final Thoughts: Increasing your business credit score is not just about paying your bills on time. It's about understanding how credit works, managing your credit wisely, and staying adaptable. Follow Sellery for more and try OvaFlow AI for FREE for 30 days by going to https://sellerydigital.com/pages/ai-salesman-bot. And if you want to partner with us to 10x your revenue using cutting-edge technology, hacks, and strategy, get in touch!
