Fri 17 Aug 2007
How To Strengthen Your Financial Credentials
Every company starts off small, and as it grows so does its reputation. Your company's reputation is based on how you conduct your business and your ethics. The most important people for a small and growing company are its lenders. Lenders will judge the integrity of your business and help you build your financial credentials.
Building good relationships with lenders and other people who give you credit is a good way of strengthening your financial credentials. Remember that financial credentials are important when you are seeking capital.
An important thing that you should keep in mind when you are looking for a business loan is that when you have certain levels of business credit established, you have to work hard to maintain them.
Building Financial Credentials
You have to work hard at building your financial credentials. Small things matter in the big picture, and this is true for credit as well. Your small utility bills, phone bills, credit card payments all add up to your business credit. Don't let these minor things adversely affect your credit standing. You may not take on a new business with massive technical requirements, but it helps to maintain a good relationship with your local bank. This is done by conducting your financial affairs in a timely and orderly fashion.
Look at the bank like one of your suppliers; just like any supplier that you have financial obligations toward, they will investigate your business' credit. All your banking activities will be looked into so make sure you have a clean record. If you want to boost your financial credentials, a good way to do so is by paying all your business bills on time, and maintaining a few open lines of credit.
Building your business' financial credentials is one of the best things that you can do to ensure that your business has the necessary finances to survive in the long term.