Cash Flow: The Life And Death of Small Businesses

Product quality, marketing and customer service all play into the success of your business. Yet nothing matters more than ensuring you have the cash you need to pay your employees, vendors, rent and general expenses.

How Credit History Can Affect Your Cash Flow

Building your business’s credit history will have a significant impact on cash flow because it determines the cost of many of your actions. It can directly affect:

• Bank financing costs
• Credit card rates
• Insurance premiums
• Rental terms and conditions
• Car and truck lease rates
• Terms and conditions from your suppliers

Strengthen Your Cash Flow: Take Charge Of Your Credit History

Here are some best practices which can benefit you today:

• Check with D&B to see if you have a credit file. If not, establish a credit report with D&B because so many lenders, suppliers, insurers and other potential business partners check your D&B credit report before doing business with you.
• If you have a D&B credit file, review it. Although D&B has rigorous quality assurance processes in place, you should also check to make sure that D&B has the correct, accurate and up-to-date identifying information about your company.
• Establish and maintain a commercial credit history. Use a commercial bank account and a commercial credit card for your business expenses.
• Use credit wisely. Pay your bills on time. Use lines of credit and credit cards judiciously and then pay them back on time.
• Monitor your business’s credit file regularly. Ensure that your business information remains accurate on a regular basis.

Remember: When you take charge of your business credit history, you’re on your way to improving your cash flow.

Learn more about how you can monitor or establish your D&B credit report.

To your continual success!

Andy

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