Transfac Capital – Giving Tips to Build a Credible Credit History
Know more about business factoring companies and factoring quotes at transfac.com. We offer business finance solutions to help you control your cash flow.
Salt Lake City, UT 84111 (PRWEB) November 21, 2012
Transfac Capital has been in the financing business from 1942. Having been in this business for long, they have expertise and exposure needed to succeed in this area. This company's seventy years in business has helped it establish several steady clients and get new ones. As an established organization, Transfac Capital believes that a strong credit rating is easy to build and sustain. Factoring financing and accounts receivable factoring company.
The company's chief financial officer stated that when a company has a strong credit score, it creates a good reputation and earns the respect and trust of other organizations. He believes that building a good credit score is crucial to an organization's success. Read ahead to understand their tips to build a good credit rating.
Sooner the Better
As soon as an organization receives Tax Identification Number it gets legally ready to operate. Once this happens, the organization must start building its credit. The immediate step would be to build a business checking account followed by getting a Data Universal Numbering System number from Dun and Bradstreet.
Deal with Auditors
It is important for an organization to be transparent with the auditors. Whatever be your financial dealings, you must disclose it to the auditors. Keep your paperwork ready and ensure that your financial statements are in order. When independent auditors provide positive comments about your credibility, your credit rating will grow stronger.
Keep a Check
It is important that an organization keeps checking with the major credit reporting bureaus. Organizations such as Equifax Business and Dunn & Bradstreet are good enough to be monitored to get an idea about an organization's credit rating. Based on the vendor payments that an organization makes, its credit history builds.
An organization must make its payments on a regular basis. Bounced checks and delayed payments can have adverse effect on your credit rating. If at all your organization is having troubled cash flow, it is best to loan amount from a bank or private financing institutions.
There are several means to raise some quick capital such as inventory financing, invoice factoring and purchase order financing. However, before going for the loan, make sure you borrow only what is necessary. Remember you are the one who is going to pay back the loan amount. So keep the debts low and payable. Avoid excessive debts.
Keep Suppliers Happy
It is essential that you establish realistic payment terms with your suppliers. You must know what you are capable of. Whether it is paying for raw materials or giving salary to the manpower, make sure you stick to deadlines. Do not delay payments; neither should you make unnecessary promises when it comes to money.
For More details and information about financing accounts receivable feel free to visit our website.
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