How to improve business credit score in South Africa?
There is no standard recipe to follow in order to improve the business credit score in South Africa or to make your business credit check report look great.
With that said, there are steps that can be taken in order to make the business credit report show the best options of the business and reflect its financial status in the most positive way.
I-Check Data Solutions has created a basic checklist of some basic tips how to make sure that your business credit report looks attractive:
- Pay your creditors and your business bills on time.
The credit score is based on the history of your payment behaviour. Every creditor has right to register the fact that the business is indebted, but not all businesses report those trades.
- Regularly check your business credit report.
Making sure that all the data is up to date is the key factor. Check if your business’ main supplier relationships show on the report. Verify that all the information is accurate.
- Update your business details.
Take action if there is any missing or incorrect information on the credit report. If your business lists annual revenues, make sure it’s up to date and accurate. By reviewing your report on a regular basis, the business can be confident in their score.
- Apply for credit.
One of the ways to show businesses’ creditworthiness is to apply for a secure credit. As one pays back the loan – it builds a stronger credit history.
There are also some very important factors that will lower the business’ credit score. The records include:
- Current collections records
- Bankruptcy records
- Judgements records
- Liens records
- Slow trend in paying business’ financial obligations
- Increase in the number of enquiries or applications done by the business itself or the owner
- Age of the business
- Size of the business
- Its turnover and other financial aspects
To read more about business credit reports go to Business Credit Check page.