Unlock Your Business’s Potential: Celebrating National Credit Awareness Month!
Business credit can be an essential lifeline for your business
March is not just about the beginning of spring; it’s also National Business Credit Awareness Month! 🎉
At C2 Accounting, we’re all about empowering small business owners like you to reach new heights – which includes the health of your business credit.
We get it.
Talking about credit might not be the most exciting topic
but trust us, it’s worth it!
Understanding how credit works can truly be a game-changer for your business.
So, grab a cup of tea (or your beverage of choice), and let’s dive in together!
Disclosure: This post contains an affiliate link, which means we receive a commission if you purchase through the link at no cost to you.
Why Does Credit Matter for Your Business?
Think of credit as the backbone of your business’s financial health.
From securing loans to leasing office space, your credit score can make or break opportunities for growth.
But fear not! We’re here to break it down in a way that’s easy to understand and, dare we say, even a little fun?
Whether we like it or not, just like your personal credit score, your business credit score is used to communicate with lenders and suppliers about their potential risk to lend you capital.
In other words, your credit score uses your past financial behavior to score how trustworthy statistically you will be as a borrower.
So, how can you make sure your business credit score tells a story that lenders can trust?
3 Tips to Boost Your Business Credit Score:
1. Paying Bills on Time
We know you’re juggling a million things at once, but keeping up with your payments is key. Plus, it’s like giving your business a high-five every time you hit that “pay now” button!
(Fun fact: Did you know that C2 Accounting offers bill pay support so you don’t have to manage it on your own?!)
2. Be Proactive Building a Solid Credit History
Rome wasn’t built in a day, and neither is a stellar credit score.
Think ahead to when you may need capital for your business and start small to build your credit.
Consider using a Bill.com Expense Card (functions like a charge card that debits your bank) to make everyday purchases and build credit gradually so that when your solid credit history is established well before you need it!
(BONUS: If you use the link above to sign up – WE BOTH get a bonus of $100- so let’s boost your credit AND give your bank account a little gift!)
3. Build your Financial Team to Boost Your Business Creditworthiness
Creating a financially healthy business is easiest when you have the right people on your team. Each member plays a vital role:
Bookkeeper
Accurate financial records and reliable financial statements build trust with lenders and suppliers, which is crucial for good credit.
Tax Accountant
Ensures tax compliance and maximizes tax efficiency, preventing penalties and audits that could harm credit. Strategic tax planning enhances creditworthiness
(Quick shout out to our amazing friends over at Horizon Tax Advisors for supporting so many of our clients with their tax needs!)
Banker
Establish a strong relationship before needing financing for easier access and guidance on improving credit profiles.
It’s important to note that even if you choose an online bank for your primary banking needs, your business will benefit from maintaining an account with a local bank.
This will allow you to nurture that personal relationship with a banker who can be that personal liaison when the time comes to access capital.
Curious about why banks won’t lend to a business? Read more on our blog: Why Banks Won’t Lend to a Business.
Controller
Oversees financial operations, ensuring compliance and implementing sound practices to safeguard creditworthiness, like our very own founder, Carleen Lamay!
And remember, you don’t have to go it alone. C2 Accounting is here to support you every step of the way.
From bookkeeping and bill pay to payroll and controller services, we’ve got your back! We love being a part of the financial teams of small businesses.
So, here’s to National Credit Awareness Month and all the opportunities it brings! Let’s take your business to new heights together.
Cheers to your success!
P.S. Fun history fact: National Credit Awareness Month was first established in 1989 by the National Foundation for Credit Counseling (NFCC), a nonprofit organization that provides financial counseling and education services to consumers.
If you want to dive more, we recommend you check out their blog post Business vs Personal Credit to understand the differences and see more best practices for your business credit health