No one likes discussing credit, but, now more than ever, it’s critical to improve your credit as part of running your small business. According to Rhonda Abrams over at USA TODAY, there are ways to improve your credit even if your credit is lousy now.
• Get help! The single most important thing I did was I outsourced my financial management. I realized I was terrible at taking care of my bills. Entrepreneurs want to handle everything themselves, especially their money, but, like me, they’re not always good at it.
• Check your credit score. When you own a small business or are self-employed, your personal credit score and your business credit are entwined. Typically, you’re going to have to give a personal guarantee for business loans, to your vendors, to sign a lease or buy a van. Business creditors are going to check your personal credit score. So pay attention!
• Use different types of credit. Most entrepreneurs rely on personal credit cards to help finance their business expenses. I did too, and sometimes still do. Credit cards are easy to use, and if you pay them off, convenient and cheap.
More than ever, managing your credit is part of running a good business.
Photo by savvyshopper.