Any business’s health or success depends on the business’s credit scores. You undoubtedly have a corresponding credit score if you own a company and have open credit.
On the other hand, a business credit score is different than a personal credit score. You should look into ways to raise your business credit score, especially if you are looking forward to getting loans in the future for your company’s growth.
And to start preparing for that, you are recommended to follow the tips below, which can help improve your MSME Cibil score.
Follow The Tips Below- Improve Your Credit Score
Pay the Bills on Time
One of the first things you need to do is pay the bills on time. Your MSME Cibil score will increase if you pay your goods bills on time.
On the other hand, having late payments or rejected checks would negatively impact your business credit score. To maintain your business credit score and keep track of it, you can rely on leading platforms like CreditQ.
Target Decreased Credit Balance
Another thing that you need to make sure is that your company’s credit utilization ratio does not surpass 30%. To be precise, it is a good idea if you manage to keep it under 15% only.
You can make this happen by paying off the balances, increasing the credit limit, decreasing credit card spending, and paying the bills more than once every month.
Besides that, you can also choose to depend on platforms like CreditQ for B2B credit management services.
Create Credit Accounts With Suppliers
Another thing that can be done is to create a credit account with the supplier with whom you frequently do business.
If you have a strong payment relationship with them, then it would enhance the number of timely payments on the file. Hence, this would somehow raise the Cibil MSME.
Do Not Cancel Old Business Credits
Knowing that your credit history greatly influences your credit score is important. Older business credits or other credit accounts are simply a sign of stability, and it would also demonstrate the confidence of your business to others.
You should know that the older business credits, the larger the impact on your MSME Cibil score would be. Therefore, when you cancel the old credits, it will remove the linked credit history.
Check Business Credit Report Timely
Lastly, you are recommended to check the credit report timely if you want your business’s credit score to improve. By working with credit card providers, make sure to delete the negative feedback from the credit record.
You must confirm the information about the business is correct or not. Hard inquiries and unpaid accounts harm the MSME Cibil report, so contact to dispute anything you find similar to that.
Time to Improve Your Business Credit Score Today
Everyone has a hectic schedule and is not required to keep up with everything. On the other hand, maintaining the MSME Cibil score can be challenging.
This is why you are recommended to rely on third-party platforms like CreditQ, which are trusted and renowned. They are well-known for being a reliable platform for preserving the MSME Cibil score.
Besides, MSME and GSTN holders can also expect to be assisted by them and receive updates on the status of the B2B credit management services.