A business credit profile is one of the most important things a business company should take care of. It helps the business in accessing business financial assistance in times of financial difficulty. If it gets tainted because of some financial behavior you do not know of, it might greatly affect the business credit file and standings that may eventually hold you off from any business opportunities, especially when you need it the most.
Here are other things that you may lose once your business credit profile receives negative marks:
· You may lose eligibility when applying for a commercial credit. There are banks that have stringent qualifications and just one negative mark found in your credit profile may easily disqualify your company.
· You may lose access to trade-credit loans. Once this happens, it may affect your cash flow and make you pay cash on everything.
· You may lose the early-payment discounts. Most suppliers reward their customers with significant discounts as encouragement to pay earlier than their due date. However, if you are a cash-paying customer due to credit issues, you will not be qualified.
It is a must to protect the business credit profile at all cost.
Securing yourself a copy of a business credit report should be your first action to do so you can check if all information and credit entries are valid and accurate. If upon checking, you found erroneous entries and negative credit, you can try contacting your creditors about the negative entry and set a possible payment arrangement that will be fair to the both of you. Regarding the erroneous entry, present some paperwork as proof of payment. After submitting needed paperwork, request for a time frame with regard to your correction request.
If you feel that you will default on a payment, contacting the creditor is still the best way of handling it. There are times that creditors even offer alternative options to help you out instead of adding negative marks on your business credit profile.
Double check on how your regular payments are being sent by your employees. There are times that the payments are being sent to wrong addresses, due to system issues, mishandling of paperwork, and sometimes no billing statement is received. To avoid these internal mishaps from recurring, you can instill strict guidelines in your company regarding handling the accounts payable.
There are other effective ways of bringing your business credit back to its good standing. If you have the means of doing it immediately or with the guidance of a credit coach to avoid compromising other important things that would be even better. Take note that your business credit is the key to different business financing you will use during tough times.
