If you are a small business owner then you will more than likely want to have a really good credit score.  Unfortunately if you have had financial problems in the past you will perhaps have a bad credit score.  On the face if it, that might not sound that big a deal.  However when it comes to securing business financing you will want to have good credit.

Sure, there are lenders out there prepared to lend to businesses with poor credit, however you don’t get something for nothing.  If a lender is going to lend to a business with terrible credit there will a price to pay.  This will come in the form of inflated interest rates and also an increased amount of collateral in case you don’t pay your loan back in time.  There are many things that can be used as collateral and it really depends on how much you want to borrow.  However, frequently people use their own home as collateral and this can result in the lender repossessing the home.

So, as you can see, you will want to build small business credit in order to access more affordable loans for your business.  You might already know quite a bit about repairing personal credit, however business credit repair is pretty similar but not exactly the same so you need to do a bit of research before you attempt to repair business credit.

First of all you need to request copies of your business credit reports from different business credit reporting agencies.  These are Experian, D&B and Equifax.  When you do this you really need to take your time to go through all the details on the credit report.  This is because from time to time clerical errors can be made and the wrong details are showing.  Other times you could have been the victim of fraud and you didn’t even realize it.  By keeping a check on your credit reports you can act whenever you see something wrong. 

If you already have business credit cards and credit accounts with B2B businesses such as printer and office supplies then that‘s good.  If you don’t have any then you should open a few up.  Office Depot and Staples are both good companies to create accounts with.  As long as you are good with your repayments they will report to the credit agencies about this and this is a very good way to increase your credit score.  Make sure that they actually will do this because if they don’t then it’s just a waste of time.

You might think that if you have more credit cards than you need you ought to close them down.  Actually, this could negatively affect your credit rating.  So it’s probably best just to keep them open.  At the same time you really need to make sure you keep them in good standing by paying off your debts in quick order.  If you keep missing repayments then this can bring your score down.  By being vigilant you will increase your score over time.  You have to be patient because there are no quick fixes.