A credit rating is a score that assesses the creditworthiness. This indicates, among other things, how significant the risk is that you do not pay your bills on time. A good credit rating is therefore important if, for example, you want to pay on credit. You can not turn a negative rating into a positive data with just one push of a button, but you can influence your credit rating. Five tips!
1. Know your credit rating
First of all, you must, of course, know where you stand and what your credit rating is today. In regards your report and accounts, you can request a free credit report; you can view your own data. In this way, you know which parts you can profile yourself and which elements are open to improvement.
2. Deposit your annual accounts in time
Annual accounts provide insight into the financial situation of your company and are therefore an important source of information for estimating debtor risks. The earlier you provide your figures, the sooner your credit rating is based on actual data. You do not have to send your annual accounts directly to Reporting Accounts. We only process the officially published annual accounts, and we receive them automatically from the Banks.
3. Ensure healthy ratios
A financially healthy balance largely determines your credit rating. When your annual figures are available, you will, among other things, consider your solvency ratio: the ratio between equity and total assets. If companies see a lot of debts on your balance sheet, they will, after all, be less inclined to grant credit. In addition, your liquidity ratios are important. These show whether your company can meet the short-term obligations.
4. Pay on time and check open items on disputes
Thousands of suppliers share the payment experiences of their customers. Not only to punish bad payers but also to reward good payers. These experiences have an influence on your credit rating. It is therefore important to pay your invoices on time. In addition, make sure that disputes are clearly marked with your supplier and are passed on in order to prevent incorrect display in reports.
5. Consider where you invest capital
Securing the capital of operating companies in the holding company is fine in itself. It is important that you realize that the financial position of the operating company is weakening. We assesses per entity. This means that negative equity or bad financial ratios (see point 3) can therefore negatively affect the credit rating of the operating company.
Improving your total credit is vital for your financial well-being. You will find law firms and other companies that will help you for a fee, but you can do it manually with a little knowledge and a little patience!