Five Simple Steps TO Fix Your Small Business Bad Credit
How To Go From Being Too Embarrassed To Apply For Finance For Fear Of Rejection In Your Small Business – To The Power, Strength & Certainty Of Being Able To Say No, To Too Many Finance Offers! – In Five Simple Steps!
Historically, We Entrepreneurs/Small Business Owners Often Tend To Put Ourselves Last. This Is How We Survive The Hard Times.
I know that I personally have chosen to pay my staff (at the time of a cash flow crisis) in preference to paying my personal credit card, my salary, or other Small Business related accounts.
Your logic might be similar to mine, in that if we keep the business alive we survive to fight another day and pay our bills later, but if the small business folds we lose everything we’ve worked for and our income stream. To me, it’s a no-brainer.
So if you’ve found yourself with a bad credit rating because of a previous downturn, keep reading and I’ll show you exactly how to get back on top in five easy steps.
5 Steps to Fixing Your Small Business Bad Credit History
STEP 1: Determine What Account The Default Is For.
Work out how bad your credit rating really is. The best way to do this is to get a copy of your personal and Small Business Equifax, and your personal and Small Business Dun & Bradstreet credit files (see the links at the bottom for more information). Free and Paid options are available.
STEP 2: Gather All The Information First.
Review your credit files and make a note of the following:
- the number and type of credit enquiries in the last 12 month period;
- the number and type of overdue accounts or defaults listed;
- the number of writs, judgements, serious credit infringement’s.
Also, make note of the following:
- the date of the listing;
- the amount of the listing;
- if paid, the date paid;
- the automatic deletion date.
STEP 3: Decide How You’re Going To Tackle Them.
Now that you know your credit situation and how good or bad it really is, it’s time to take action to improve your credit score.
Step three is about getting into action. Now you’ll need to negotiate with your creditor to remove the default. Don’t go in ‘guns blazing’, especially if you have a court Writ or Judgment, remember how you like to be treated.
Before you start, decide whether it’s something you want to spend the time and effort yourself to learn the legislation, find the best contacts within each creditor organisation, understand their obligations to be able to point out the errors, and then have the arguments with each of them multiple times… Or,
You want to take advantage of MyCRA Lawyers nine years of specialist training, research, systems, contacts, and our independently externally audited 91.6% removal resolution rate, so you can hand over the responsibility, knowing have now taken the right steps to give yourself the best chance of clean credit rating success.
STEP 4: Write To The Creditor To Ask For Information On The Account.
This is where the rubber hits the road, and it might be hard going if you’re not experienced (there’s up to 8,000 pages of legislation and related reading).
You, or MyCRA Lawyers will contact your creditors individually and request a series of documents and associated information they are legally required to hold about you and your Small Business.
When we receive none, some, or all of that information, our solicitors go through it with a fine-tooth-comb looking for legislative or compliance errors or omissions in the way the listings were added to your credit file.
When we find those errors or omissions (91.6% of the time) we write back to the creditor, instructing them that this default listing is unlawful due to the breach and subsequently requires immediate removal.
STEP 5: Consider Getting A Specialist Credit Repair Lawyer On Your Side.
Your creditor will either argue (we’ve been around a while so it happens less and less), refuse, or simply remove the offending listing.
29.4% of our clients get the good news in seven days or less, with most in 30 days or less.
Once your creditor has agreed to remove the listing, on average it takes between one and 10 days to actually have it erased from your credit ratings.
So if bad credit has been stopping you opening new advertising accounts, securing an overdraft, updating your fleet, refinancing, or anything else that has been holding back the growth of your business, maybe, just maybe it’s time you took some positive action to fix your credit rating and leave the past in the past.
Give me a quick call on 1300 667 218, and we can chat about your situation and what your options really are.
Mention you read this article (SBAA0518) when you call, and you’ll receive a 20% discount on any legal service invoiced & paid before 30/06/2018.
For a list of credit reporting bodies and where to get your free credit files go to:
Meet Our CEO – https://www.mycralawyers.com.au/who/staff/graham-doessel
Think about joining the Small Business Association of Australia (SBAA)- https://smallbusinessassociation.com.au/membership/
Proudly a National Sponsor of the SBAA – https://smallbusinessassociation.com.au/sponsors/