I was perusing the Business Financing & Lending group on LinkedIn—it’s a highly recommended discussion group, by the way—when I came across a piece of sage advice. Being the generous guy I am, I wanted to share it with you.
The comment comes from S.G. Bronstrup, the President of Bristol Builders, Inc. in Newhall, California. It’s simple advice, really, but effective. It’s checking your credit reports weekly.
“I knew that,” you’re saying. Guess what, though? I bet you that you, person reading this, do not check your credit reports on a weekly basis. I’m guessing you check them monthly, twice a year or yearly.
There are very good reasons to take Bronstrup’s advice, as Bronstrup himself demonstrates:
Monitor and maintain you(r) Paydex and DUNNS score weekly. A good credit rating is essential to running a business, whether you need financing or not to for your business. Ask every one of your suppliers to report to all agencies. It has helped me in an industry plagued with non-paying their bills on time.
I would add that it is really necessary to frequently check out your credit if you’re going to be looking for financing anytime in the next year. You don’t want to be caught flat-footed by a sudden drop that cripples your chances of getting money. That can fast become a crisis if, say, your only delivery truck breaks down and you need to replace it or repair it and don’t have the cash on hand. When it comes to credit, ignorance is not bliss.
So that’s why it’s sound advice. Do you intend to take it?