Fixing business credit is no easy task and should not be taken lightly, especially if your business financing fate is dependent on the removal of negative data. Poor credit can destroy your chances of getting a business loan/line increase, vendor payment terms, government bids, and successful partnerships. Prior to applying for credit, prepare yourself by monitoring each business credit report for negative or inaccurate information. Often business financing will require a personal guarantee, so the guarantor will want to pull their personal credit reports, as well. Lenders may use multiple business bureaus or all three major bureaus, so reviewing each report will make sure you are well prepared.
If your credit scores are poor, there are options available for fixing business credit – do-it-yourself or professional credit repair services.
The do-it-yourself route is popular, especially if purchasing business credit repair services is not financially in the cards. This is where we urge warnings to companies – while it is possible to fix your own credit, you can also cause more damage. If you contact one of the bureaus to dispute information and do so incorrectly, you can solidify the negative information that they have on file and make it more difficult for a business credit repair professional to remove the account. Credit repair companies have certain techniques and are trained on credit reporting rules which are different with each bureau.
In today’s business environment, companies want to eliminate as much risk as possible. Having poor credit scores can have a significant impact on your business’s future. It is best to review the reports and consult with a specialist, if you have financial concerns and cannot afford their services be honest with the representative. Any established credit repair agency will provide you with steps in the right direction to make sure that your business credit is being built, established and managed.