How To Go About Building Business Credit for Business Loans?

Building Business Credit for Business Loans

Whether you are looking to expand your facilities or just raise enough cash to maintain operations, a business loan is always a viable financing option. However, if your record isn’t one that would seem to inspire confidence, we suggest seeking help in building business credit for business loans to keep your company afloat or to help it grow.

While “credit scores” are commonly associated with individuals, businesses have credit records as well. In fact, for many companies, their excellent credit scores have helped them get through tough economic times, despite plummeting sales and layoffs. This is because they make excellent business decisions, pay loans on time, and practice best practices. But for many other companies, these are not enough.

KeyPoint specializes in helping businesses qualify for loans by helping them trim down transactions that pull down their credit ratings. It is an established fact that credit risk increases when they do not ask for payment before delivering products or services. The credit risk rises further when a business’s clients keep on stalling when being asked to pay up. As a result, a business is forced to absorb these non-payments, cutting down on production and postponing planned improvements or expansion.

Because of this, we at KeyPoint assist businesses in vetting their clients before extending credit to them. We evaluate clients based on credit history, past transactions, and, more importantly, whether they pay their bills on time. Based on this information, our business credit clients are able to adjust their payment terms, or, in extreme cases, refuse to do business with these potential debtors. To this end, we also help our clients establish trade accounts and business credit profiles, which can be seen by credit monitoring services such as Dun & Bradstreet.

Another aspect of building business credit for business loans is keeping your credit information secure. Many businesses have fallen victim to scammers posing as representatives of the company, then closing questionable transactions which later appear on a company’s business record. This affects more than your financial statements—your company’s reputation could also suffer as a result.

For us at KeyPoint, building business credit for business loans is more than just finding and removing questionable transactions. It is a continuous process that aims to maintain our clients’ ability to negotiate for favorable loan terms. Visit our website to read more about repairing credit, or call us at 1.800.745.7400 to set up a free initial consultation.