Small business credit management is something that many business owners have trouble with. If you want your business to be successful, you need to manage your credit as effectively as possible. Here are a few tips for managing your small business credit.

1. Start a Business Credit File

In order to start building up your business credit, you should make sure that you have a business credit file. Dun & Bradstreet is the credit bureau that relates directly to businesses. Check with them to see if you already have an existing business credit profile. If you do not have a credit profile yet, you need to apply for a D-U-N-S number with Dun & Bradstreet. This will get you started with a credit profile for your business.

2. Use Business Credit

You need to try to establish a business credit history whenever you have a chance. Instead of putting things in your name, set accounts up in the business name instead. For example, if you can get a business credit card, make sure that you put it in the name of the business. The same goes for signing up for utilities or any other services that your business is going to need. When you have the opportunity to make purchases, make sure that you do so with a business credit card. You do not want to make large purchases, but you should make small regular purchases with business credit.

3. Pay Your Bills

One of the most important things that you can do for your business credit is pay your bills on time. You should strive to have a perfect record when it comes to making your bill payments on time. This goes for everything from your credit card to the electric bill. Many of your creditors are going to report to Dun & Bradstreet your payment history. One of the most important factors in determining your business credit score is whether you make your payments on time or not. If you do make all your payments on time, this is going to boost your score significantly.

4. Keep Balances Low

Whenever you use your business credit, you want to make sure that you keep your balances low. You do not want to max out your business credit card or lines of credit. Try to keep them at a level that is below 30 percent of what your available credit line is. The credit bureaus are going to look at this when determining what your credit score should be. They do not like to see businesses that have all of their lines of credit maxed out.

5. Monitor Your Credit

You need to continually monitor your credit report as much as possible. Most of the time, when a change occurs in your credit report, it is going to happen relatively quickly. This means that you need to stay up-to-date on your credit report and watch out for any errors.

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