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Follow on Google News | RSD Commercial Collection Agency Explains How Debt Affects Your Business Credit ScoreBy: Ross, Stuart & Dawson, Inc. Do you know how debt can affect your business? 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. But what are the effects of a low business credit score? First of All, How Does a Company Go into Debt? 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. What are the Effects of Debt on a Business? One of the big differences between a personal credit score and a business credit score is that anyone can access your business credit score. Debt appears on your business credit report, and depending on the situation, it can stay there for upwards of ten years. Other companies may want to access your business credit report, especially ones that are considering working with your business. If they see a history of debt, it could cost your company a contract. Of course, banks can also see your business credit report, and having debt will make banks and other lenders less likely to work with your business. Bottom line is that debt drops your business credit score, and a low business credit score indicates to lenders and other companies that your business might not be safe to work with. This directly affects the prosperity of your business. Read more about business debt on our website: https://www.rsdcollects.com/ Let RSD Be Your Go-To 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 them a call at (248) 370-8160 or fill out a claim form here: https://www.rsdcollects.com/ About Ross, Stuart & Dawson, Inc: Located in Clawson, Michigan, RSD is a commercial debt collection agency that focuses on professionalism, kindness, and most importantly, results. RSD operates both domestically and internationally in over 120 countries. Locally they serve Detroit, Grand Rapids, Lansing, the Upper Peninsula, and more. RSD is 1 of 26 agencies considered a "certified agency" by the Commercial Law League of America and is endorsed by the International Association of Commercial Collectors. https://www.rsdcollects.com/ End
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