How Important are Credit Ratings for Businesses?
Just as credit scores for individuals, businesses also have credit scores. It is important for business owners to keep a watchful eye on their ratings to ensure that they maintain a good score. Credit ratings for businesses will help you borrow money, get credit cards, and establish good relationships with customers and suppliers. Businesses can learn their current credit rating by viewing it through Dunn & Bradstreet, where business credit scores are maintained.
Many small business owners use their personal credit when making purchases for their new business. It is important that you begin to establish credit for your business rather than relying on your own ratings. Create a commercial bank account and begin using it to pay for business purchases. To establish good credit make sure to pay business bills on time. Do not overextend your credit because this could cause a lower credit score. There are many factors that are used in determining your credit rating with D&B.
Manage Business Credit
Credit is something that takes continually monitoring. In order to establish business credit you must remain aware of your current rating and watch to make sure that it is correct. Review your credit score regularly so that if there is a problem you can address it immediately. There are some ways to improve your company’s credit rating. When problems are noted, take action to resolve them as soon as possible. This may require help from a skilled business attorney.
Utilizing Credit to Your Advantage
As your credit rating is more established and improves, you can use it to your advantage. Obtain credit with a lower interest rate so you can repay loans that you previously took out with higher rates. This alone can save your company thousands of dollars. As your credit improves you will be able to get better prices and terms on the supplies necessary to manufacture your products.
Identity Theft Concerns
Identity theft can occur to anyone including individuals and businesses. When an unauthorized person makes charges on your company’s credit, the result can be devastating. Take steps to protect your company from identity theft. Allow only authorized members of management access to credit card and banking information. Review statements on a regular basis and have a reputable accounting team in place to handle transactions. If a problem occurs with your credit or identity theft, speak with an experienced attorney to learn how to proceed. Contact the experienced lawyers at Udall Shumway PLC for assistance with all your business concerns.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Credit Ratings for Businesses, or any other litigation matters, please feel free to contact Roger C. Decker at 480.461.5343, log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.