Building good credit for your small business is much like building your reputation. You want to be in good standing in the community and have access to resources that will help grow your business.
Yet nearly 45 percent of small-business owners like you get turned down for loans because of low credit scores, according to a study by the Federal Reserve Banks of four major cities.
Good financial health is important for many reasons. Beyond helping you secure loans, it can also help you attract new clients.
If your business is growing and you need to add additional staff or resources, count on the experienced loan officers at Kerndt Brothers Bank. We’ll look at your financial history and help you reach your goals. We want to help you build your business creditability.
In the meantime, here are five strategies we recommend to keep a handle on your business finances and improve your credit:
- Keep tabs on your personal credit rating. A good rule of thumb: The higher your credit score, the lower your risk for defaulting on a loan. At Kerndt Brothers Bank, we recommend a personal credit score greater than 700. At least twice a year, make sure all the details are correct with credit bureaus like Experian and Equifax. Institutions make errors. Make sure you correct any mistakes as soon as possible.
- Pay all your bills on time or early. Doing so shows you’re a responsible person and business owner. It will also help raise your credit score.
- Watch your spending. Keep only a reasonable amount of debt on your credit cards. Make it easy on yourself so you can continue making regular payments.
- It is wise to at least occasionally, pay your credit card debt to zero. Kerndt Brothers Bank offers REVOLVING operating loans to help keep credit card balances in check. These loans will save you interest as their rates are much lower than those charged on credit cards.
- Get pre-approved. It’s much easier to apply for credit before you need it. Apply for a loan with Kerndt Brothers Bank and you’ll have a little more financial peace of mind.
It’s also important to develop a relationship with a trusted lender. At Kerndt Brothers Bank, we’ve been helping grow small Iowa businesses since 1856. We’re a great local partner in your community. Contact us today for any of your financial needs.Follow me on Google+