If you’re an entrepreneur, you have a business credit score. It’s distinct from your personal credit score; a compilation of information related to liens, bankruptcies, history of debt repayment, and other factors. Wondering how to improve your business credit score? Here are a few guidelines. 

1. Monitor Credit Reports

Make it a habit to check your business credit report at least once a year. Also, be sure to take a look at it when you plan to apply for a loan, buy property or capital equipment, or have been subject to a data breach. Be proactive and mark it on your calendar. Doing so will help you identify incorrect information and file a dispute if necessary. 

2. Pay Bills On Time

Over a third of your credit score will be determined by your bill payment history. It goes without saying: Pay your bills on time. If you’re able to extend payment schedules in a way that doesn’t affect your credit, do so. Otherwise, being even slightly late on your payments can result in strong consequences.

3. Pay Down Balances

If you’re able to reduce the amount you owe to creditors, you’ll improve your credit rating. Not sure how to begin? Start by focusing on the accounts that charge you the highest interest rate. On your other accounts, keep up with minimum payments while continuing to pay as much as you can afford on the high-rate account. Once you’ve paid that one off, move on to the account with the next highest rate. Continue until you’re up-to-date with payments on all accounts. 

4. Work With Vendors

Be sure to establish a good relationship and solid credit with all of your vendors, and make it a habit to pay them within the amount of time you agree upon. Once you have a good track record of payment, ask them if they happen to report trade information. If they do, they can indirectly help you boost your credit score. 

5. Communicate With Creditors

If you get into a situation where you’re struggling to pay creditors, you’re not alone. Many entrepreneurs encounter unavoidable situations caused by external factors. Communicate openly. Let your creditors know what’s happening and set up a plan to get the bills paid. Many will work with you instead of reporting late payments to credit reporting agencies.

Solid credit is crucial for the success of your business. Try these suggestions to improve it.