broken image
broken image
  • Abundance
  • Business Specialists 
    • Business Specialists
    • Articles
  • Choosing the Right Loan 
    • Choosing the Right Loan
    • Construction Loans
    • Asset Finance
    • Refinancing
    • Line of Credit
    • ATO Tax Debt
    • Debtor Finance
    • Business Overdrafts
  • …  
    • Abundance
    • Business Specialists 
      • Business Specialists
      • Articles
    • Choosing the Right Loan 
      • Choosing the Right Loan
      • Construction Loans
      • Asset Finance
      • Refinancing
      • Line of Credit
      • ATO Tax Debt
      • Debtor Finance
      • Business Overdrafts
Contact
broken image
broken image
  • Abundance
  • Business Specialists 
    • Business Specialists
    • Articles
  • Choosing the Right Loan 
    • Choosing the Right Loan
    • Construction Loans
    • Asset Finance
    • Refinancing
    • Line of Credit
    • ATO Tax Debt
    • Debtor Finance
    • Business Overdrafts
  • …  
    • Abundance
    • Business Specialists 
      • Business Specialists
      • Articles
    • Choosing the Right Loan 
      • Choosing the Right Loan
      • Construction Loans
      • Asset Finance
      • Refinancing
      • Line of Credit
      • ATO Tax Debt
      • Debtor Finance
      • Business Overdrafts
Contact
broken image

Six steps to improve your credit rating for equipment financing

Maintaining a strong credit rating is crucial for business owners looking for equipment finance. A good credit score can lead to better loan terms, lower interest rates and smoother approval processes.

 

Here are six key steps to boost your credit rating for small business owners needing equipment finance:

 

Understand your current position

 

Begin by obtaining and reviewing your credit report. This report shows your performance across various credit areas, including payment history, credit utilisation, length of credit history and recent loan applications. Understanding where you stand is the first step toward improvement.

 

Address credit report errors

 

Credit reports often contain mistakes that can negatively impact your score. Review your report carefully for any inaccuracies, such as incorrect payment records or accounts you never opened. Be sure to dispute these errors either through the credit reporting agency or directly with the lender. Both are legally required to investigate and correct any mistakes.

 

Maintain consistent payment history

 

Payment history significantly influences your credit score. Ensure all bills, loans and credit card payments are made on time. Consider setting up automatic payments to avoid late payments in the future.

 

Manage credit utilisation

 

Keep your credit utilisation at a reasonable level. While having available credit can improve your score, using too much can harm it. Aim to keep credit card balances low and pay more than the minimum payment whenever possible. This shows lenders you can manage credit responsibly.

 

Build credit strategically

 

If you're new to credit or need to rebuild your score, start by using a credit card for small expenses and paying the balance in full each month. This helps establish a positive payment history while avoiding debt accumulation. Remember that each new credit application is recorded, so limit applications to necessary ones.

 

Negotiate with creditors

 

If you’re struggling with debt, make sure you let the lender know. Many lenders are willing to arrange payment plans or modify terms to help you stay current. This proactive approach can prevent negative impacts on your credit score and demonstrate responsibility to future lenders.

Previous
Can asset finance help startups?
Next
Misconceptions about small business loans
 Return to site
Cookie Use
We use cookies to improve browsing experience, security, and data collection. By accepting, you agree to the use of cookies for advertising and analytics. You can change your cookie settings at any time. Learn More
Accept all
Settings
Decline All
Cookie Settings
Necessary Cookies
These cookies enable core functionality such as security, network management, and accessibility. These cookies can’t be switched off.
Analytics Cookies
These cookies help us better understand how visitors interact with our website and help us discover errors.
Preferences Cookies
These cookies allow the website to remember choices you've made to provide enhanced functionality and personalization.
Save