21 Şubat 2008 Perşembe

Strengthening Business Credentials

As your company grows, over time it develops a reputation for how it conducts business. The integrity of your small business and your relationships in the business community are heavily valued by lenders. Strong relationships can equal a compelling case for obtaining financing. Strong credentials based on solid footing in the business community are invaluable when it comes time to seek the capital your company needs.

When you know you will be seeking a commercial business loan, it is very important that once you have your business credit established you are able to maintain that business credit. Stability and daily updates will be the key to this. Establishing and maintaining good business credit references will be very important. Once you have built that good business credit standing, you will need to monitor it closely to make sure nothing adversely affects it.

When establishing your business credit you want to use every possible business credit reference. A benefit to building business credit is you can never have too much business credit. Whether it is your utility bill, your cellular phone bill or a merchant account, it is all relevant to building your business credit
If you are a relatively new small business, you may not yet have established the technical requirements that a bank, credit union or traditional lending institution uses to determine your business credit worthiness or eligibility for a commercial business loan. In this case, your bank loan could very well be rejected. On the other hand, developing a good relationship with your local banker and good banking habits are important, regardless if the bank turns you down for financing.

In a sense the bank can be considered one of your suppliers, since they provide you with a service. Alternative lenders and business credit bureaus will investigate your banking practices, as they do your relationship with other vendors.

In terms of a strong business credit image, membership in a local Chamber of Commerce in you area gives your small business many advantages, including marketing, advertising and networking opportunities. It also provides invaluable support through referrals and recommendations from other local small business owners.

Being a Chamber of Commerce member denotes a measure of recognition for good standing in the small business community. You can be a member of more than one Chamber of Commerce. Membership has yearly fees attached.
Membership with the Better Business Bureau provides consumers with a basic level of confidence, since membership requires adherence to ethics and standards of small business conduct. It also has membership dues attached. The BBB promotes self-regulation for small businesses within their specific areas of industry, which adds to a company’s image of having integrity. The business credit image is taken into consideration by lenders when a small business is seeking a commercial business loan. The unfortunate side of the BBB is the reality that unfounded or unfair complaints can be publicly filed with the BBB against a small business.

Your business relationships with your vendors and suppliers, your banking institution, and your relationship with the Chamber of Commerce and the Better Business Bureau are all taken into consideration when you are applying for commercial financing, business credit cards and lines of credit. Take the time to maintain the integrity of these relationships. It will pay off in the long run.

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