Good credit is a critical part of running a business. If your company's credit is in good shape, it can significantly lower the overall cost of financing basic functions like acquiring inventory and paying for property.
What happens if a business ends up with bad credit, though? Fixing the situation is important. A business credit repair counseling firm will encourage you to consider these four options.
The first order of business is to find out what your credit rating is. Seek a complete credit report from each of the major agencies so you can see what's helping or hurting your company's credit. Do not respond to anything on the report until you've received all the copies and met with a business credit repair counseling consultant. They can help you organize your response to maximize the benefit of attempting to repair the company's credit rating.
You might identify items on the credit report that are erroneous or inaccurate. Contact the credit agencies to bring the items to their attention. Where possible, send them supporting information that shows how the information is wrong. If your company is based on the east coast, for example, it probably never would have taken out a loan with a bank on the west coast.
Use the reports to find discrepancies. If one agency lists something the other two don't, for example, bring that to the inaccurate agency's attention.
Try to Restructure Payments
Given the nature of business bankruptcies, which may leave creditors with close to nothing, most creditors are flexible in renegotiating payments specifically to avoid that possible outcome. Do not go overboard with the demand for a restructured payment. Instead, ask what the creditor can do for you. If their offer is sufficient, take it and be happy. If the offer is problematic, simply say so and indicate what you might be able to work with in a new payment structure.
Ask for Reporting
Not all lenders report all payments. If you already obtained the credit reports from the major agencies, you should have a good idea of who is or isn't reporting your payments. Contact the ones that aren't and encourage them to report everything in a timely manner. The same applies to any utility payments. You want as many positive points on your record as possible so the reporting agencies will build up your score.
Remember, you deserve something for putting in the work to pay those bills. Get something to show for it on your credit report.