Increase Your Business Credit Score (MNP 3 Minute Debt Break)

2021-10-05

schedule3 minute read

Credit Counselling

Lifestyle Debt

 

Today, many Canadian businesses have to work twice as hard to keep up with a competitive landscape in a weakened economy. If you really want to stay ahead of the curve and leave the doors open for as much opportunity as possible, it's crucial to be fully informed of your credit score and what you can do to further improve it.

Two people discussing business
Your credit score helps lenders decide on your worthiness of credit, which can make all the difference should your business find itself in a pinch for any reason. It's crucial to be proactive and take steps to boost your business credit score as much as possible.

There’s a widespread myth that asking to see your credit report somehow affects your score. It doesn’t, so feel free to request your report and study it carefully, paying particular attention to the negatives. You may find a few errors that can easily be corrected or some outdated information that can be removed.

The best way to boost your business credit score is to start paying down your debts. In particular, try to reduce the balance on your credit cards as this is seen as a particularly risky form of lending. If your business credit score is good already, request an increase in your borrowing limits. This may sound completely counter-productive, but actually makes perfect sense. Requesting a new credit line can actually enhance your score as it lowers the percentage of your available business credit in use. Similarly, if you have a positive history with a business credit card, do not close the account even if you no longer require it.

Another basic way to increase your business credit score is to make your payments on time. Regularly missing repayments on your outstanding business credit is a sure sign of a business in trouble. It’s a huge red flag for any lender, and is almost guaranteed to make securing additional funding difficult.

Also, be sure to file your paperwork on time. If you operate a limited company, the documents you file will contribute to your business credit rating. Make sure you file regularly and update any changes, as many lenders will not do business with companies that have incorporated but not filed any accounts.

These are just some of the tips you can use to increase your business’ credit score. MNP Debt understands it hasn't been an easy go for Canadian businesses lately. If your business has already begun to falter and you're looking for advice as to what your best course of action should be, contact MNP Debt on what debt solutions are available to help you.

Subscribe to MNP 3 Minute Debt Break on your favourite streaming service.

 Listen on Apple Podcasts  Listen on Spotify  Watch and listen on YouTube
 Listen on Google Podcasts  Listen on tune in  Listen on SoundCloud

Latest Blog Posts

2023-10-27

Signs of a Debt Management Scam (MNP 3 Minute Debt Break)

Credit Counselling Lifestyle Debt

Canada has seen a steady rise in debt settlement companies recently. With enticing promises like "Reduce your debts by 70% without the need for bankruptcy," it's easy to see why many are tempted. But as with all things that seem too good to be true, it’s essential to proceed with caution.

Read More

2023-08-01

Why checking your credit score matters

John Haralovich

Consumer Proposal Bankruptcy Lifestyle Debt Credit Counselling

How well do you understand your finances? In commemoration of National Financial Awareness Day, we encourage you to understand your credit history and constantly monitor your credit score.

  • Why should you check your credit score regularly?
  • How to establish credit when you have no credit history
  • What are the factors impacting your credit score?
  • How to keep a healthy credit score
  • Does bad credit ever go away?
  • Seek professional help

Read More

2022-11-01

Three signs you’re overspending — and how to stop it for good

Lifestyle Debt Bankruptcy Consumer Proposal Debt Solutions Credit Counselling

Household overspending is one of the most common causes of financial insolvency. Unfortunately, it’s also one of the easiest to overlook.

Read More

What do you know about your money?

The beginning of your debt-free journey is only three minutes away

 

Listen to our podcast

Contact us today. We’re here to help!

Book a FREE initial consultation chevron_right
Consultation icon