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  • Writer's pictureDustin Thomas

Credit Repair: Your Business Financial First Aid

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Legitimate credit repair companies can do more than recover, resolve, and improve your business’s credit rating. They can also boost a business’s creditworthiness and integrity to financial lending institutions and customers.

How is your business credit score lately? Did your business receive an inaccurate rating from one of the credit reporting agencies, giving you a poor overall score? Do you feel your business deserves a better credit rating? Fortunately, there is a solution to those problems. Credit repair services can give companies the remedy they need to recover and resolve whatever fraudulent or incorrect information is reflected on their credit reports.

Wiseteam Consulting provides business financial solutions, including credit repair services. With primary services such as business term loans in Wyoming and surrounding areas, the lending firm is one of the industry’s top leaders in business financing, offering a convenient and smooth business loan application process within 24 hours.

Why is having a good credit rating important for businesses?

Credit rating significantly impacts a business’s operation, especially on its financing side. A good credit rating is a business’s ticket to prove its “creditworthiness” to lending or financial institutions; a plus point for them if they want faster approval for business loans.

Credit rating and credit score are often used interchangeably, but the two are not the same. Credit rating refers to the trustworthy value of the business or company when making payments on time. The credit score, typically between 300 and 900, determines the business’s (or individual’s) creditworthiness. Credit bureaus calculate the score based on the business’s credit report, which includes information on their availed credits, loans, and their payment history.

The typical credit score range is as follows:

Excellent: 800 - 850

Very Good: 740 – 799

Good: 670 – 739

Fair: 580 – 669

Poor: 300 - 579

The higher the credit score, the better chances the loan gets approved, and the better the business will look to potential lending companies. The loan application becomes less stressful, and potential investors will view your business as viable for investment. Such and such that your business will be getting financing offers before you even decide to search for one!

Another payoff for having a good credit score and rating is that you can get refinancing at lower interest rates. Interest rates are usually calculated based on existing credit scores. The higher the credit score is, the lower the interest rates will be given.

This all boils down to how vital accuracy is regarding credit score information. A single negative, inaccurate detail can tumble down the average of a business’s credit rating, affecting its standing with financial institutions. It will be viewed as a high credit risk by lending firms.

How do business credit repair services work?

Companies that offer credit repair services work to improve the credit ratings of business owners. These firms typically do the heavy lifting regarding the bulk of the repair transaction process.

The credit repair company starts by asking for a copy of the business’s credit report from the following credit bureaus: Equifax, TransUnion, and Experian. The company then assesses the credit report for any signs of harmful information or derogatory marks like charge-offs, tax liens, and bankruptcies. Negative items could include records of missed payments when you paid on time, incorrect account statuses, or outdated information.

Next, they set out to dispute whatever errors they find and negotiate with creditors to remove these negative details. These steps could include a request to validate information, a letter to dispute derogatory marks, and cease-and-desist letters to debt collectors.

Rebuilding credit while waiting

A credit repair is not an overnight process but is usually the first (and the best) step to take if a business wants to improve and regain its financial footing. The timetable for credit repair is the same when doing it personally or hiring a credit repair service. The advantage of going through a credit repair service, such as Wiseteam Consulting, is that someone else is doing all the manual transactions on your behalf and keeping you informed of the progress simultaneously.

While waiting, it’s best to start building back up and improve your business credit score. You can make timely payments for whatever loans your business has availed. Pay on time any term loans, equipment financing, real estate financing, lines of credit, etc.

Reducing your debts on revolving credits is also something that you can do while waiting. Lenders also consider a business’s credit utilization rate. It’s like the amount of credit the company has used versus the amount available or left on balance.

It may take some time, but credit repair is the first essential step businesses must take to resolve credit rating issues or improve credit scores – your business’s financial first aid. It is a process that companies should and must not do without. After all, it’s not only the business’s creditworthiness that is at stake here; it also involves the business’s overall integrity to financial institutions and its consumers.

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