What to do when Denied Business Credit

• Your business profits. Does your business have a healthy profit margin? Improving your profits by reducing and trimming down the operational excess and unnecessary business spending can help improve profits and boost your chances of getting approved. • Your business profits. Does your business have a healthy profit margin? Improving your profits by reducing and trimming down the operational excess and unnecessary business spending can help improve profits and boost your chances of getting approved. • Your payment histories and business credit profile. Obviously, how you are paying your existing obligations will play a role in your approval or denial for credit. If you’ve been denied business credit recently, check your Paydex and other payment performance data and make adjustments as necessary. Most payment experience data is only reported for 2 to 3 years (depending on the credit bureau), so if you’ve made a mistake or hit a bump or two in the road, don’t let it worry you. Just keep the positive payment history building, and make sure what is being reported to date is accurate. • Your bank ratings. If your business bank account balances are habitually low, this can actually rule you out for certain types of business credit. Try to maintain $10,000 or more in your business bank accounts to avoid trouble. The bottom line: if you’ve been denied credit, there’s something about your business that makes it appear to be a bad risk. It’s your job to analyze and understand your business credit report and business finances, determine where the problem is, and take the necessary steps to correct your course. Sometimes the lack of history or data on your business will be a key factor in a credit denial. This is something that can be easily remedied by taking careful steps to shape your business’s financial picture and credit profile.