How to Improve Your Company's Credit Rating

Similar to credit reporting on consumers, the credit status of businesses is also tracked. Information on your company is reported through its financial activities with banks, government records and suppliers. When applying to a new supplier for terms, or to a bank for a loan, your company's credit standing will be reviewed and it will determine if you get those Net 30 terms from the new supplier, where payment is due 30 days after product is sent instead of having to pre-pay, or that bank loan at a good rate.

Instructions

1

Order copies of your business' credit report from the Equifax, TransUnion and Experian websites. There will be a fee for this service.

2

Review the credit report. Check for incorrect information such as loans which have been paid but still show as having money due. Confirm that your major suppliers are reporting your timely payments to the credit agencies. If they are not, contact your supplier's business office and request that they report your good standing to the credit bureaus.

3

Contact the credit agency to fix any information you feel is not correct. Instructions on how to do this will be supplied with the copy of your credit report. At a minimum you will need to provide your company name, your company's tax ID number and supporting documentation, such as bank statements showing a loan has bee paid in full. Be sure to save the originals and only send copies.

4

Pay the company's bills well before the due date, allowing time for the payment to arrive in the mail and for the receiver to process it.

5

Use your company's collateral to obtain a secure bank loan. Make your payments in a responsible manner to demonstrate that your company is a good credit risk.