How to Repair a Bad Business Credit File?

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.

Top 5 Considerations - Startup Business Loans

If you want to start your own company it will take a little money to get started and on your feet. Banks put many things into consideration when you ask them for money for startup business loans. Here are five of the most important considerations when you want money from a bank for a loan for your new company.

1. When you want to get money from a bank the first thing they will consider with startup business loans is your credit. You should have a healthy credit score that looks great. If your credit is bad it tells a lender that you do not repay your debts and this may stop you from getting a line of credit.

2. Experience is a big factor when you are hoping for startup business loans. You should have years of experience in the line of work you want to start your own business and you should be able to convince the bank you are the right person to open the company. A bank may think you have the best idea ever but if they do not think you are skilled enough for the company to generate revenue or to manage the business they will not lend you any money.

3. Assets are another factor that lenders want to see. When you are trying to secure startup business loans you should have some assets worth money that the bank can secure if they feel they need it. If you have nothing worth any value and you are asking for money to begin your own business you will probably be turned away. Banks want to see you are serious and when you secure assets with the money they know you are.

4. Gather some money down for the startup business loans. The best way to show a lender that you are serious about your new company is by having a healthy chunk of money as a down payment. When you have 20% to 25% down payment for your startup business a bank is more willing to talk to you. A good size down payment may even make a bank look past your bad credit.

5. If all of the factors above do not fall in your favor you might try and find someone who can co-sign a loan with you. A lender will want to know if you have someone who will back you that you are good for the money. This person will need to have good credit but they can be considered as a silent partner in your endeavors. In most cases a friend or family member is the best person to ask to cosign startup business loans.

If you are looking for money for startup business loans you should consider many things. A bank will want to know that you are financially in a good position, qualified to run the business, why the business will do well and many more things. Securing a loan is important but you may need a down payment, good credit, assets, or even a co-signer.