Understand your business creditworthiness: A company credit report (CCR) is a good way for businesses to improve their eligibility for financing since it builds vital reputational collateral. A CCR is a month-on-month record of a company’s debt-related exposure and payments and is widely used by lenders such as banks and non-banking financial institutions to evaluate the ability of companies to bear additional debt.
Pay and track your business loans regularly: An irregular or bad credit history may impact the chances of availing future loans for expanding your business. So, it is imperative to regularly repay instalments on all your business loan obligations and also track the progress on them.
Keep a tab on the credit history of partners/proprietors: Remember, commercial lenders also check the credit reports of partners and proprietors before lending to partnership and proprietor entities. Keep track of your personal credit report and that of your partners before applying for a loan.
Keep track of entities where you’re a guarantor: The details of the loan guarantor appear in a company’s CCR. Be aware of the repayments and creditworthiness of the company for which you have stood as a loan guarantor as it has a significant impact on your own creditworthiness and reputation.
Go through your company’s CCR before applying for business loans: This will help business owners and managers get a precise view of where the company stands in the financial life cycle and identify critical areas that need improvement to further enhance its financial standing.