|
|
Like this article? PLEASE +1 it! |  |
|
Keep your credit record squeaky clean
| Guest post by: Rene Truter |
Article Overview: At one time or another, you will probably have to apply for a loan or overdraft to expand your business, buy equipment or finance some other aspect of your operations. This is when having a good credit history becomes very important.
 |
Free Download - Some pointers when choosing a business partner By Rene Truter |
Keep your credit record squeaky clean
Establishing and maintaining a good credit record takes time and can be challenging during tough financial times. This is why you should not obtain credit for unnecessary expenses, as it can become tempting to spend more money than you actually have, for things that are merely a “nice to have”. Using credit from one source to pay debt from another is also aggravating a vicious cycle.
Getting a credit footprint In order to get credit, you must have a credit history. If you've never bought anything on credit, consider applying for a business loan or business credit card to establish a credit history for your business. You can then start building a track record, i.e. a good track record. To do this, only spend as much as you can pay back and always pay by the due date, which will show that you are responsible about handling money and take your debts seriously.
Don't take out too much credit, as this will negatively affect your credit score. Most creditors will generally approve you for more credit than you can realistically afford, so try to use no more than 50% of your credit. Remember, the more debt you have, the more you are putting your business at risk when times get tough.
If you can’t make payment, for whatever reason, contact your bank or creditor, explain your situation and make arrangements accordingly. Most would settle for a small payments rather than no payment at all. Facing the credit brick wall If you are declined credit, find out why. You could be turned down for various reasons, including not meeting the creditors' minimum income requirement or not having been at your current residence or job for the required amount of time.
You could also be rejected because your business - or you in your personal capacity – is black-listed. If this is the case, you will have to try and get this record cleared, or you will have problems getting credit from anyone for anything. The National Credit Regulator’s website contains information on how to check your credit record and the details of credible Credit Bureaus in South Africa. Make it a habit of checking your record every now and again, to make sure that it is accurate.
Copyright © 2011 Business Partners Ltd. All rights reserved.
Your Credit Score is an Important Tool for Good Money Management Practices
Bad Credit Car Loans - Getting a Auto Loan Financing With Bad Credit
QuickBooks - How To Record Certain Transactions
The SUV Owner’s Guide to Lower Auto Insurance Premiums
Tiger Woods needs a Life Coach and so do you!
Mortgage Canada Bad Credit – Become The Owner Of Your Dream Home
Mud Season. Not.
Business Credit Cards versus Personal Credit Cards
Protect Yourself by Knowing Your Customers' Credit
Accounting: Chart of Accounts
No Credit Auto Loans and Car Loans for Those Who Have Bad Credit Rating
Get Guaranteed Bad Credit Car Loans & Auto Financing for Used and New Cars
Buy Real Estate Clean Up Credit Report One More Oil Well
Credit Information Bureau India
Small Loans with Bad Credit in Australia
Four ways women with bad credit record can access business loans
ACT! - Tips and Techniques
Why A Good Credit Score Is Important To Your Business
Financing Film Tax Refunds for Filming in Canada
Credit cards: how do we use them?
Article Tags: credit, credit history, debt, overdraft, rating, record
|
About the Author: Rene Truter RSS for Rene's articles - Visit Rene's website The SME Toolkit is a project of the Small and Medium Enterprise Department of the World Bank Group and is available in multiple languages through local partners, such as South Africa, around the world. Business Partners Ltd, leading risk financing company for small and medium enterprises (SMEs), has made the online Toolkit available for all entrepreneurs in South Africa. The Toolkit is a joint initiative between Business Partners, the International Finance Corporation (IFC) and IBM, offers easy access to information, resources and online training relevant to SMEs in a large number of industries and business sectors. The SA SME toolkit provides how-to articles, business forms, financial tools, online training and information resources developed by leading experts, and free software tailor-made for SMEs. All aspects of business set-up and management are covered, from business planning to accounting, financial management, human resources, import /export, legal and insurance matters, marketing, sales, operations and information technology. The site also offers a range of self-assessment exercises and tools, aimed at enabling entrepreneurs to take control of problem-solving in their companies, and even to proactively implement strategies to avoid potential problems. Users have lauded the SME Toolkit as a one-stop shop for almost any piece of information needed to run their business. Register on the Toolkit today to start receiving the monthly newsletter and grow your business knowledge and skills. Click here to visit Rene's website   Buying a property for your business When to call in an expert to help start or manage your business Being assertive is good for business Your employees are the first impression Successfully selling your product or service |
Related Forum Posts
Re: From Backburner to Sky's The Limit!
- I heard there was a boy in the UK idol that broke her record. Of course people are already saying she is a scam and fulled everyone. Why not just let it be a give her all the credit she deserve?
Re: Ever been scammed...
- a credit check runs for about $25 here too. Have you guys ever wondered why we get so many pre-approved credit cards on the mail? I've heard that car dealers sell your credit reports to those companies.
credit cards
- Nana, you can get a credit card! Get a Secured Credit Card. It's a Visa or MasterCard which is a hybrid of a chequing/credit card.
There are two types:
1. You put in an amount that you would like to have as your credit limit in $500 increments as security and you you can either pay in full each month or make minimum payments
2. You can have a credit card linked to your chequing account and you can spend only has much as you have in your chequing account.
I recommend #1 and they both go to improving your credit limit.
Unsecured Lines of Credit
- I have found that building a strong business credit profile allows for many commercial credit lines that I don't have to personally guarantee. Within 3-4 months I have recieved credit lines under my business name with Home Depot, Lowes, Staples, and Dell Computers. I wish I knew about business credit when I first started my business.
Re: Credit Tips: Dos, Don'ts & a Quiz!
- Don't forget to check your credit ratings and know where you stand. It can give you a good idea of where you can improve, unless you already have an impeccable score!
Experts recommend checking your credit score at least once a year. Normally if someone else other than yourself checks your credit (ie. mortgage company, auto dealer, credit card application), which is called hard inquiries, it can lower your credit score. However when you check your own, it is considered soft inquiries and there is no impact on your overall ratings.
You can easily review your score online at Equifax or TransUnion Canada.
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: Leanne Hoagland-Smith, Chicago Sales Coach
Best Automated Forex Trading Strategy
Build Your List with Joint Venture Giveaway Events
May 2012 Top 100 Social Media Experts to Follow on Twitter
What to measure to be phenomenally successful in business
10 mistakes of media relations
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
The Importance of Master Data Management (MDM)
The five pillars of internet marketing strategy
Working Across Borders
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.