As the economy continues to feel the effects of sluggish consumer spending—and particularly in the area of electronics goods—it’s important to take the news in stride and remember that a downturn will eventually give way to better times. But while patience and perseverance are required to weather this economic low, custom electronics retailers shouldn’t simply wait passively.
Savvy business owners tackle downturns with proactive measures to build a more resilient business. In addition to the many customer-related moves you may make, such as more strategic marketing or special offers, it’s important to focus on the one tool that supports your entire business: credit.
In good and bad times, credit can help keep a business steady. It provides financing for new growth initiatives or temporary relief during a cash-flow crunch. By keeping the following tips in mind, you can take an active approach in managing credit, which will present more financing options to help keep your business strong.
Put your best foot forward
Lenders look at a number of sources to judge your business’s credit-worthiness, and they will look even more closely in the current economic climate. If you’ve established a strong history with a specific lender, that’s a great start, but lenders also generally look beyond their own records to assess your credit history, turning to personal credit and commercial credit bureau reports.
It’s important to make sure lenders see the best and most accurate record of your credit history. Think of credit reports as your business’s résumé when it comes to lenders. Just like a great résumé, an impressive and complete credit report can open doors, but a report that provides incomplete or inaccurate information about your business can cause lenders to say, “No, thanks.”
To put your best foot forward, begin by making sure your business is registered with the major reporting agencies, such as Dun & Bradstreet, Experian and Equifax. The more sources of information there are about your company, the easier it is for lenders to confirm that you are an established business.