The Five C's Of Your Business's Credit Worthiness

  • View
    62

  • Download
    2

Embed Size (px)

Text of The Five C's Of Your Business's Credit Worthiness

  1. 1. OF YOUR BUSINESS'S CREDIT WORTHINESS 5 Cs
  2. 2. Most small business owners work hard to keep their businesses running smoothly, but often forget and undermine the importance of taking care of their businesss credit rating. Creditworthiness plays a big role when you need to look for nancing options through business loans or alternative nancing sources such as invoice discounting services to support or grow your business. So how do you ensure that your business is creditworthy? These 5 Cs below will help you do just that.
  3. 3. Clear your dues on time Defaulting or delaying paying your bills on time will affect your credit rating negatively and can impact any chances of securing much-needed nancing for your business. Paying up on time will not only affect your companys credit score, but it also helps you maintain a good relationship with your creditors. 1
  4. 4. Clean your debts and limit credit usage Owing varying amounts to different lenders will play an important role in your businesss creditworthiness. Limit all such debt and credit usage to ensure that you dont face adverse situations when you actually need the money. Remember, keeping your debt levels low will decrease your credit utilization, thereby increasing your credit rating. 2
  5. 5. Check your businesss credit report regularly Many small business owners tend to ignore keeping a tab of their com- panys credit scores, but this practice can have an adverse impact in the long run. It is imperative to regularly go over your credit reports to avoid errors that can lower your credit score and the overall creditworthiness of the business. 3
  6. 6. Create a credit history While this may go against what most people believe in, remember that creat- ing a credit history gives lenders something to assess your companys credit- worthiness by. Make sure you pay any bills well before the due date. Not only will this build a credit history, but also reect in your report as timely pay- ments, in turn improving your companys credit score in the process. 4 Credit history
  7. 7. Correct all errors Even the simplest of mistakes or errors such as a wrong address or inaccuracy in your name can massively impact your companys credit rating. Any mistake on the credit report, however small it may be, should be corrected at the earliest. 5
  8. 8. +91-80-39515161 Email: info@kredx.com facebook.com/KredXIndia/ twitter.com/KredXIndia linkedin.com/company/kredx-india THANK YOU