- KredX Editorial Team
- 27 Nov 20
- business

Credit score represents an individual’s or business’s creditworthiness. It is a measure of how efficient a borrower is, when it comes to handling debt. If your business tends to fall behind on loan repayments frequently, the company’s credit ratings are bound to suffer.
Credit information companies or CICs, such as TransUnion CIBIL, keep track of this score for each credit active individual or company. Thus, every time your organisation fails to meet service EMIs for a business Loan, this credit score drops.
Importance Of Maintaining A Good Credit Score
A business can benefit significantly by maintaining an impressive rating. Listed below are some of the advantages that your business can experience by ensuring an exemplary credit record –-
Ensures A Quick Borrowing Process
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Boost Eligibility For Substantial Loan Amounts
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Avail Finance At Lower Rates And For Considerable Tenure
How To Improve Credit Rating?
If your company’s current credit score insufficient to avail financing, following the tips mentioned below can help you build a better credit history.-
Repay All Dues On Time
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Lower Credit Utilisation Ratio