One of the universal truths is this: When you don’t need something, you can get it. When you do need something, you can’t.
That’s true of financing, too. The times where you need financing most desperately may be the times when it is hardest to get, thanks to some jerk named Murphy and his stupid law. If your credit was floundering already, your efforts are probably torpedoed before they even begin.
But it doesn’t have to be that way, as Entrepreneur explained in a recent article. The to getting financing is ensuring your business and personal credit is not in shambles, something you can do if you put a little effort and follow some of the smart advice out there on the Interwebs.
Why do it? Because if you don’t, your quest for financing is going to hit some significant roadblocks. Businesses with poor credit struggle to get most kinds of financing, and even if you can find working capital loans that can be used for small businesses with less than ideal credit, there’s no guarantee you can get them if you’re this side of abysmal. It pays to plan ahead and stay on course.
Here’s a couple things you can do to ensure your credit remains high:
- Pay bills on time. Difficult at times, no doubt, but entirely worth it.
- Don’t bite off more than you can chew. If you have multiple loans floating out there at once, or you’re buying a fleet of new equipment today, that’s probably going to have an adverse effect on your credit when you can’t keep up with the payments. Stay smart.
- Careful with those credit cards. Cards can be a boon to your business, but use them wisely. It’s easy to get crushed under the weight of the interest most cards have attached to them.
Share your own credit readiness tips in the comments, gentle readers.