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In the digital era, more and more start-ups are finding their feet every day. Up until a few years ago, it was incredibly difficult for these insightful and gutsy entrepreneurs to gain any financial backing, as the drive for lenders to support them was at an all-time low after the financial crash.
However, things are starting to turn around. The ins and outs of business credit may seem a little confusing, but with a great business credit profile on your side, as well as a few helpful top tips, you should be well on your way to giving your business a boost.
1.Shop around for a vendor
Just like with any product or service, you should always look around at the various offers and rates that lenders are currently giving before deciding who to go with. Remember, whoever you do choose, you’ll spend a long time building a relationship with them and negotiating rates, so it’s worth doing the research in advance.
There are a lot of factors that can determine who the best business credit cards are with. For example, a branch may have recently expanded and want to pass their success onto business owners by lending more aggressively, from which you can benefit. Or, a lender could simply have a lot more packages and options available, one of which is practically tailored to you. Either way, make sure it is a considered decision.
2.Work on your credit profile
There are so many ways to improve your credit profile. For starters, ensure all your suppliers are paid either early or on time, and also make sure that key transactions are being recorded on your profile, as things can easily be missed but can impact you heavily.
You should aim to check your profile at least twice a year, but more frequently would mean you’ve got a better chance of spotting mistakes, payments that aren’t yours, or false negative activity. Finally, as the owner of an up and coming business, you should aim to be just as vigilant with your personal credit history as you are with your business.
3.Take advantage of card opportunities
Businesses are always looking to build healthy relationships with other industries and connections across sectors. You’ll be the one reaping the benefits this time though, if you keep your eyes peeled for businesses who actively promote and support start-ups with certain opportunities. For example, using gas cards to build your business credit.
There are several business cards related to the fuel industry, such as the Valero Gas Card, and if you mention that your company has five or more employees and that you have been doing business for two or more years, it will usually eliminate the personal guarantee. You will have to give certain details, such as the monthly average amount that you spend on fuel, but for many new companies, this can make a huge difference.
Do you know of any other ways to give your business credit a boost? Leave a comment and let us know.