A less than perfect corporate credit rating can be damaging your business. Bank loans will be harder to obtain, if you can get one at all. This will mean tying up need cash which is your working capital. Suppliers will also be hesitant to extend corporate credit terms than your competitors enjoy.
Bad corporate credit can be repaired. Your business is not the first to experience bad corporate credit and it will not be the last. The main thing to remember is that communication with your creditors is the first step in repairing your corporate credit. Stop avoiding their phone calls and be proactive. Pick up the phone and call your creditors. Everyday that you wait simply makes the problem worse.
Your goal is to set up new payment terms with your creditors. Corporate credit can be re-established if you are able to set up new payment arrangements and keep the payments up-to-date. If your cash flow is a problem, let your creditors know what amount of payments you can afford. If the problem was in bookkeeping, say the bills went to the wrong department and were always late because of this, let your creditors know what steps you have taken to correct this problem.
Remember, companies that offer corporate credit want to extend businesses business credit. That is how they make money. If you can arrange payment that you can handle and pay on time, you are well on your way to re-establishing good corporate credit. Make sure your employees know that paying all bills on time is essential. There should be no instances of bills not being received by the right department or simply the bookkeeper is on vacation and no one else stepped in. Train your employees to look for monthly bills and question why they are not being paid promptly. These simple steps should get your corporate credit back in good standing.
