In the financial world, your business credit score, often referred to as Paydex, is the basis for everything. This is a reflection of the efficiency of the company’s internal process, its buying power and also its reputation in the eyes of creditors or lenders.

In a time like when there is a global financial crisis, companies are desperate to keep their credit report in decent ratings – especially so if you’re a small business owner in need of business financing.

If you are looking for ways on how to improve your business credit score, here are some useful tips:

1. Keep your business credit profile in order. Be aware of this; make sure everything is correct and consistent. If you find inconsistencies and inaccuracies, be sure to correct them or have your bank involved if it concerns them. Agencies like Dun and Bradstreet, Experian and Equifax offer customer online tools for update these details regularly.
2. Relevant trade references should be represented. If you have a long-standing relationship with a supplier or service provider and there have been no delays on the payment schedules for them, put this is in your business profile. If you are doing large business with the companies, this should be on your credit profile. You can update this twice a year.
3. Personal finances should be kept in good records. If you have a new company and you wish to apply for credit, your credit score will be considered by companies as a basis for your creditworthiness. Until your company is able to establish a credit reputation, your consumer credit profile will be reviewed.
4. Pay on time. Late payments to other companies will lower your company’s credit rating. Because of this, you should pay within the net terms set by your suppliers.
5. Compare your credit score with other companies and search for key indicators. This will allow you to see any areas that your are lacking on and be able to gauge your level compared to your counterparts.
6. Keep your debt financing down. A company’s balance sheet filled with debt will lead companies to conclude that you may be a risk for their business too.
7. Build your own profile. Make it more detailed, some credit managers prefer that. Supporting information is also important for them to asses the risks in a broader perspective.

Keep in mind that being responsible is what your business credit report is all about. Since Paydex Score is a measure of your credit business worthiness, it’s obvious that you need to build your score early and keep it high at all times.

When hard times hit your business, it is comforting to know that your past good credits can save your business from untimely closure.