Simple Tips to Improve Your Business’s Financial Profile
- Separate Business and Personal Expenditures
While it might be tempting to charge personal dinners or a new pair of shoes to your business account, avoid mixing business and pleasure. Once you’ve become conditioned to blurring the lines between business and personal spending instituting the division will be a hard habit to build. Keeping the two separate shows creditors that you take your business and your business credit rating seriously– Fight the temptation!
- Take Steps Towards Fixing Your Business Credit
Unlike personal credit, where tackling charge-offs, past-due accounts, and bringing your maxed-out balances below your credit limit will improve your score over time, the best way to improve your business credit is to start implementing responsible practices immediately and focus on looking forward. Of the three major business credit indicators (Equifax, Experian, and Dun & Bradstreet), D&B scores log real time data, meaning immediate “brownie points” for you immediate payments versus having to wait for billing cycles to see your financial shrewdness pay off.
- Avoid Spending Beyond Your Means
If a lender extends capital (ie: a cash advance) to your company, spend wisely! Use the capital for expansion, marketing, and other revenue-generating expenditures so that your cash flow will increase, allowing you to pay off your advance easily and show lenders you are a good candidate for future credit and capital.