To first find out what your credit rating is, you will have to register with Dun and Bradstreet (D amp; B). This company monitors and manages changes to your credit profile to make sure that the credibility of your business is accurately portrayed. D amp; B developed the Composite Credit Appraisal, which rates your company from 1 through 4, which reflects D B;’s overall assessment of your firm’s creditworthiness. The Composite Credit Appraisal is based on D B;’s analysis of your company’s payments, financial information, public records, employee size and other key factors that impact your business.
You should keep your company payments updated because this information can be reported to Dun and Bradstreet. When you establish a business account suppliers, banks and other creditors your payment history can be made available for the public to view. You should pay off all outstanding debts that are due, to keep you in good standing and your credit rate high.
Keep your financial rating intact by avoiding discontinuance of your operations and bankruptcy. Keep up to date on your financial status with each of your creditors because they report the status each accounts you have to D amp; B. Pay off any outstanding obligation even if you have to make arrangements to pay a small amount at a time, such as, lines of credit.
Manage Public Records
After you review your D amp; B file, if you find any public records (judgments), you need to pay them off and get a release letter, stamped by a judge, stating that the debt is paid in full. Go to your local courthouse to clear up all public records that concern your business. Even though this process involves more than writing a letter or writing a check, you must do whatever you must to clear the name of your business. Either you or an attorney can handle this matter.
Increasing the number of employees can help your credit rating tremendously. Adding more employees where and when you can will have a huge impact on your credit rating. Increasing the number of staff members indicates that your business is fiscally fit. It also indicates that your business will have some longevity.
The length of time that you are in business will automatically add to your credit rating. The longer you stay in business, the better off your rating will be.…
Debt management companies may seem like a viable option for reducing your debt and avoiding bankruptcy, but is this really your best option? Many Americans will be scammed by claims of erasing credit card debt and becoming debt free. However, there are some debt relief agencies that are perfectly legitimate. Before deciding if this is the option for you, there are a few things that you must consider.
Debt relief companies work with your creditors to cut interest rates and agree on a more affordable payment option. You then send a monthly check for all of the bills you have signed up for in the program and they cut the checks to the individual creditors. In this monthly bill, you will pay a fee for their services.
You are then paying this company to do something that you can have done for yourself. Generally, if you are behind on payments, credit card companies are willing to work with you. Many times if you call and explain that you are having difficulty paying, they will arrange alternate payments. In this economy, it is better to receive partial payments than no payments. Furthermore, there are a growing number of lenders who will not work with debt relief agencies. By law, they are not required to do so.
With most debt management organizations you are required to sign a contract. Although contracts vary by the individual company, there are a few things almost all require. During the period in which you are using their services, you agree not to take out any additional credit. While this would make sense, certain situations may arise that you may have to. After all, it may take anywhere from three to five years to fulfill this obligation. This would then put you in breech of your contract.
There is also the myth that debt relief services will not hurt your credit. This is not entirely true, be sure to check the terms of your credit card agreement. Some may settle for less, but can still report you to the three major credit bureaus for the simple fact that you are breaking your contract with them.
Debt relief can be very useful for some individuals, depending on their situation. Beware of those who make claims that seem to good to be true, they probably are. It’s also a good idea to check the better business bureau before agreeing to any contract or paying any money to the company. Legitimate debt relief agencies typically will not ask you for money up front.…