Losing sleep over your latest credit report? We know financing construction equipment is particularly challenging with bad credit. But improving your construction business credit score is simple when you have the right guidance.
If you’re planning on buying construction equipment, put these tips into practice to help steadily raise your credit score so you can get lower financing rates.
Do you know your construction business credit score? Monitoring your business credit helps you estimate its projected trends, which can help you determine the best time to buy your next piece of construction equipment.
Checking it too frequently can lower your business credit score, so be sure to have a system in place to monitor your score the right way.
The most well-known method for improving a credit score is to make sure your bills are always paid on time. Paying off credit cards and other business expenses the first time the bills roll in can really boost your credit. Paying off a loan can make a huge difference in your construction business credit score, too. But these options are not always possible.
Paying bills can be tough during off-seasons for roofing companies when business is slow but bills are still piling in. But keep in mind you don’t have to pay each bill in full to raise and maintain a healthy credit score–take advantage of payment plans and, when possible, make more than the minimum payment. Also look into different budgeting tools to help you manage your finances.
Missing multiple payments or making late payments consecutively negatively affects your credit score and leads to credit card companies drastically raising your interest rate. Don’t get stuck paying even more than you’ll owe with your current interest rate–make sure you make those payments on time every time!
Using a business credit card is a great way to build credit. But a high credit limit doesn’t mean a high credit score. If you know the business can’t financially back up a purchase and you don’t have a payment plan in place, think twice before swiping that plastic.
When you do choose to use a business credit card, go with a company that offers cashback bonuses. Some companies even let you put those bonuses towards your overall balance, so that's less out of your pocket when the bills come in.
Be sure to do your research when you need to invest in construction equipment. Some companies offer zero-percent interest financing for a fixed number of months.
Considering financing the Equipter RB4000? Check out our financing guide for your roofing equipment needs.
Building relationships can also help improve your business credit score. Some equipment suppliers are willing to create and manage a credit account with you if you do repeated business with them. Be sure to confirm they share data with credit reporting agencies, so it’s added to your business credit report.
At Equipter, we're rooted in relationships. Every one of our products is designed to overcome struggles faced by roofing and construction companies across the US.
If a company sends you to collections, whether due to delinquent business or personal payments, you may not qualify for affordable business equipment financing. But there’s a way out.
Collection laws can differ from state to state, and you may even be able to avoid paying collections by negotiating with the company that sent you to collections.
When a debt in collections is paid off, it doesn’t erase its negative effect on your credit report. Consider sending a “pay for delete” letter directly to the collections agency to get it removed and watch your credit rise.
Equipter connects you with financing options for our most popular piece of roofing equipment, the RB4000. Find out how we can help you revolutionize your roofing business with this self-propelled roofing trailer.
Want to try before you buy? No problem. We have over 200 locations across the US, so you can easily access the Equipter RB4000. Just let us know where you are, and we’ll connect you with a rep at the rental location closest to your job site.