Your company’s credit score is taken into consideration when dealing with banks, NBFCs, and businesses of similar nature. It can help you get better deals while getting loans or funding from such organizations. Maintaining a good credit score also helps build good relationships with businesses. Moreover, your company gains a good reputation if your finances are managed properly.
To acquire all these benefits, you need to learn how to create and sustain a strong credit score. Stay with us, and we will help you obtain this using a few key methods.
3 Ways of Achieving a Good Credit Score
In order to build and maintain a decent credit score, you need to have complete control over your company’s finances. There are other techniques as well that can increase the credit score of your business. Let us discuss a few of them in detail:
- Register Your Business
If you have just opened your business or if it has started doing well, you need to register it in the company database. Listing your business with proper details, including name, phone number, address, and other details, makes you seem legitimate to other companies. If you initiate a conversation regarding any kind of business deal with a bank or an NBFC, they will do a background check on you. Registering your company increases your chances of doing successful business.
- Get a DUNS Number
By enrolling your business in Dun & Bradsheet’s database, you will be assigned a DUNS number. This number provides an identity to your company. D&B (Dun & Bradsheet) is the leading global provider of B2B data, and it gives insight about the businesses in its database. Thus, having a DUNS number will open you up to collaborative opportunities with other companies in the database. Having good relationships with these companies will improve your credit score as well.
- Manage Your Company’s Transactions
Be it an SMB or a large-scale business, there needs to be complete documentation and verification of each transaction that occurs in the business. From sales to purchases, you need to keep track of the money that goes in as well as out. Moreover, you need to be punctual and accurate regarding your payments. If you owe someone a certain amount of money for a product or service they offered, it is necessary to pay them in the correct time frame. By making your payments on time, your credit score will improve. This is because it proves to the system that if someone funds your business or lends you money, you will return that money in time.
Conclusion
These are some effective ways to improve your credit score. Though there are a few other techniques as well, these ones majorly contribute to building and maintaining a healthy credit score. To make this process even easier, you can collaborate with D&B for assistance with the above-mentioned tactics. By enlisting your company in its database and getting a DUNS number, you will not only get insight about your company but also about your competitors and business prospects.
