Have you ever been in the situation where you want to expand or improve your company at any point and you may consider a loan? But how does you company look like from the point of view of lender and business partner? It could be frightening to invest in a business that look in a tight spot. Be aware of your corporate score could help you with your future professional relationship. In fact, having a complete and up to date information on your company corporate report with a good corporate score is the easiest way to get the best financial terms.
What is the component of a corporate compliance report?
The corporate report reflects a current and objective picture of how a business manages its financial obligations. Armadillo provide four different kind of corporate report.
Why corporate score is important?
The corporate compliance score is a number calculated to determine how likely a company will be able in meeting the overall corporate obligations of the company. The only way to find out your corporate score is to check it out. Here is what it looks like:
Having a low corporate score could involve significant drawbacks as:
- High interest rates on credit cards and loans
- Disapproval for credit and loan applications
- Difficulty renting
- Required security deposits on utilities
- Higher insurance premiums
- Decreased job prospects (especially in upper management positions)
- More difficulty starting a business
A low corporate score could affect your business but it evolves during time so you can bump up it at any time. However, you have to be aware that it is a long process, it would not happen overnight.
Here are few tips to boost your corporate compliance score:
- Check your corporate score
It is really important to check your corporate report score as 80% of consumer corporate report have an error or inaccuracy that can cost credit points.
- Make sure you always pay on time
Every single bill has to be paid on time. Indeed, unpaid bills will impact your corporate score up to six years.
- Reduce or get rid of debt
Lenders want to make sure you can afford to pay back.
- Diversify (do not do that if you are drowning in debt)
Lenders like to see a mix of revolving credit accounts and instalment loans.
- Don’t close a credit card that still has balance or your only credit card
Close a credit card with balance look like you have maxed out the card. The corporate score considers the amount of credit card balance relative to your credit limit (called credit utilisation). Plus, you should keep your last credit card as a demonstration of your experience with credit.
- Don’t get rid of your oldest credit card
Your oldest credit card reflects the relationship with your oldest business partners. Lenders like to see long credit history.