In order to improve and maintain a quality credit score, companies need to run lean, efficient operations.
Boston MA (PRWEB) November 16, 2012
In a turbulent economy, credit can sometimes be the lifeblood of a business, and a bad credit score can seriously hamper future opportunity. LeaseQ, one of the leading providers of equipment leasing and financing in the United States, is providing businesses with some simple procedures that can be followed in order to make sure that credit ratings remain where they need to be.
In order to improve and maintain a quality credit score, companies need to run lean, efficient operations. Small businesses especially, namely those in the hospitality, retail, and service industries should staff in accordance with slow periods, and consider the benefits of working with more part timers and freelancers than necessarily having a full time staff. Freelancers can be hired as 1099 employees and as such are responsible for paying their own Social Security and income taxes. They also do not require benefits such as paid vacation, healthcare, or holiday time. The use of freelancers is an excellent way to trim operations and make sure things run smoothly and efficiently. Doing so can in many ways prevent a company from getting in over its head financially, and digging out from any financial hole they may be in.
Running a lean organization improves the cash flow, which can be much more attractive to prospective lenders. With that in mind, try to pay for invoices up front in exchange for pre-payment discounts, as this eliminates black marks on the credit record for late payments and may help with the cost of inventory. If there are lines of credit currently being used, shop around for lower options. Many small lenders are very hungry for business and will often make attractive lending offers. This may prove invaluable for expanding the business.
Maintain a tight accounts receivable ship. Invoice customers every month, on time. Leisurely requests for money will invariably result in leisurely payment plans. If someone owes money, stay after them. If a service or product has been delivered in a timely fashion, it is only proper to be able to expect payment in a similar manner.
Through the improvement in cash flow, the end result is better credit scores and the increased chances of being able to secure the necessary capital for future projects.
Based in Boston MA, LeaseQ is one of the leading providers of equipment financing and leasing options in the United States.