Benefits of keeping a good credit record in your business

The best sample of a company’s image is its credit. Because the benefits of keeping a good record go beyond the credit itself.

Banks usually increase limits and lower interest rates to those creditors who have good behavior. Everyone wants to lend to those who pay well and on time.

If as an entrepreneur you wonder how to improve my company’s credit record then you should know that paying bills on time, paying the balance more than the minimum payment and using credit frequently is the best way to build a good image.

A high score has many advantages either to develop business in your environment or outside it; short or long term; and in all kinds of relationships:

 

More and better credit

loan Refinancing

The relationship between the available and used line of credit is essential for the calculation of your score. The more you have and use it, the more solvency your company will have.

Good managers know that it is better to have it and not need it than to need it and not have it, especially in emergency situations.

 

Refinancing

If you have a good track record, you are more likely to renegotiate an old debt even with other institutions, since the word is spread among the banks through your records of your behavior and that is determined to make decisions.

 

Low rates

Low rates

If you are thinking of renewing the fleet of your vehicles or renting a car abroad, you get cost advantages or the possibility of climbing models due to your good behavior.

 

Reservations

The vast majority of rental agencies or tourism service providers consult a customer’s history to find out the reliability they have to meet their commitments. So with a good image you will have greater certainty that your reservations will be respected.

 

Rewards

Negotiation

The points and rewards are better and in greater quantity for those clients who have fidelity and good behavior. That is an unwritten business maxim, treating the best customers better.

 

Negotiation

Other institutions, customers or suppliers usually make their business decisions and contracts according to what the banks say about their future traders. It is not written anywhere but it is a fact that they do.

The lesson is clear: if you honor your credit, you are reliable.