What is business credit repair? Business credit, also called business score, is an accurate record of your business s outstanding debt obligations, including those owed to vendors and banks. Note the higher your credit rating, the lower your monthly interest rate and the quicker it takes to get a loan approved, refinance an automobile or secure a big business contract. The longer you have held a business credit account, the more financial power you wield in any negotiations for major purchases. In addition, by paying off all of your debts early, you'll build significant business credit goodwill and will find that credit cards often come with an introductory interest rate as low as zero percent.
So, what is the best way to go about small business credit repair services? Honestly, it starts by examining what your debt problems are and what kind of assistance you need. For many small business owners, there are several options to pursue first. The first step is to obtain a full and complete financial statement from your most recent year end report. Look for any irregularities that may be present such as accounts payable that are past due or those associated with your S corporation or C corporation. It may also be necessary to look up other debts owned by your company that may now be owed to third parties.
Once you have identified these accounts, then it's time to contact the lender or credit card companies involved and see if you can work out a repayment plan that both you and the lender can agree upon. While some lenders will agree to discount the balances and roll the balances over into another account, many others will not and will force you to pay the balance in full at this point. In order to get the best business credit scores possible, you should follow up with your lender until all outstanding debts have been resolved and you have a good business credit score.
When you are ready to go about starting the process of business credit repair, it's important to remember that many consumers try to resolve their bad credit issues without actually consulting a professional. Many times, the results are disastrous. For example, a consumer who attempts to fix their bad business credit through using a debt settlement company will generally discover that the lender will not consider settling the account in full. This makes it extremely difficult, if not impossible, to ever have good business credit again. Instead, consumers will find themselves with bad credit scores that they can only hope to repair with additional and extended efforts.
Of course, not every business owner faces bad credit repair issues. For most, it usually only occurs after years of neglecting payments to their creditors and suffering significant financial hardships. When a business owner finally does approach a lender or credit card company with a plan for credit repair, they are typically met with resistance. Lenders and credit card companies commonly view troubled business owners as high-risk borrowers with little financial skill, making any solutions they offer impractical or untenable.
In order to obtain a credit score that is acceptable, a business owner will need to approach the situation from two angles. First, they will need to be prepared to explain their situation to a potential lender or card company. In this initial contact, the credit repair organization must first submit documentation outlining the problems with the business' credit report. In addition, the organization must . . . . . . also submit a counter-offer to the lender or company detailing the counter-offer and how it will address the borrower's concerns. The credit repair organization must follow this procedure within 30 days in order to obtain an acceptable credit score.