Just like your personal credit card, your business’s credit card has a credit score. This credit score is hugely important to the success of your business. Also just like your personal credit score, debt will drastically lower your business’s credit score.
There are many ways a company can go into debt, but the two major ways are 1) not paying credit charges on time, and 2) maxing out the company credit card. Synovus.com says that “credit bureaus favor businesses that keep their utilization ration under 30%, so avoid charging more than that percentage of your card’s credit limit.” Even if you can’t stay under 30%, the important thing is not maxing out your limit.
Reach Out to a Commercial Collection Agency
RSD is a commercial collection agency that’s been helping businesses like yours kindly collect debt for over 48 years. If you are struggling with B2B nonpayment or payment disputes, give us a call at (248) 370-8160 or fill out a claim form here.
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