Managing the Credit History for Your Small Business
As a small business owner, you may be juggling many different responsibilities at once. One of the things you don’t want to have to worry about is your credit history. Managing your credit can be tricky, but it’s important to make sure that your credit score is as high as possible. Here are a few tips for managing the credit history for your small business.
Small company owners have a lot on their plates, especially when they’re in the early phases of operation, and also when they begin planning for growth. The opportunity to bring a unique concept to the market and have control over your own career is one of the benefits of starting up or taking over a small business.
Anyone may establish a small business, but not all those who do are financial experts. Even if you’re not aiming to become the industry’s tycoon, understanding how to keep your books balanced is an important component of ensuring that your small business idea continues to flourish.
If you run a small company in Australia, you’re not alone in your difficulties. According to the Australian Bureau of Statistics (ABS), the number of small enterprises has risen since 2013 – a small business is defined as one with 0-19 people who are “actively remitting in respect of a GST role” and have an ABN1.
According to the Australian Business Counts journal, there were just over 2.1 million businesses in operation in Australia as of June 20142. “We’ve seen an increase of 20,496 actual businesses in Australia since June 2013. This was due to a rise in new company registrations and a fall in the exit rate of firms.” says David Skutenko from the ABS. “Overall we’ve seen a 20,496 increase in active companies since June 2013.” said
It’s more difficult to maintain your credit file. A small company owner has two choices when it comes to running their business: as a lone trader/proprietor or as a partnership, in which the proprietor assumes responsibility for the firm’s debts.
Banks and other credit providers will be hesitant to consider your personal and business credit files as completely separate. This is why it’s critical to be able to keep an eye on your personal credit file, especially if creditors are going to use both when making their decision.
Small businesses may also create themselves as a registered company, accepting all the responsibilities that come with this choice under the Corporations Act. Instead of a director, any debt is linked to the company itself.
If your business closes or files for bankruptcy, you may need to reconsider your financial assets and liabilities. If you’re unsure what steps to take next after closing your personal credit file, it’s essential that you contact us right away.
If you have been declined credit, or your credit score is not where you want it to be, Credit Repair Ausvengers can help. We offer our credit repair and improvement service that have helped many people improve their credit score. Our credit repair team is experienced and knowledgeable in the credit improvement process, and we will work tirelessly to help you achieve your goals. Contact us today to learn about our credit repair service! Improving your credit score can mean getting approved for a mortgage, car loan, or even better interest rates on current loans.
If you have been declined credit, or are finding it difficult to get approved for a loan, then contact Credit Repair Ausvengers today. We can help to remove negative listings from your credit file, such as defaults, court judgements and fraudulent enquiries, which will give you a better chance of being approved for a loan.