While you cannot fix bad credit in just a few short weeks, there are things you can do now to get you on the right track before and during the first few months of the new year.
1. Take Stock
Print your credit report and take a look. See what is dragging you down and make a plan to fix it. If there any mistakes, contact the credit agencies and determine what needs to be done to have them removed. Typically they required a request in writing and it takes a few months for it to actually happen, so start now.
2. Make a Plan
If you see legitimate issues causing your score to be low, get out your pencil and calculator or spreadsheet program and make a budget. Figure out exactly what you can realistically pay each creditor each month in an effort to stop them from reporting negatively on your credit report. At this point, you are looking for a total amount available for debt service.
3. Call and Make Nice
Now call each creditor and see how they may work with you. Can they reduce your interest amount or even the amount you owe? Will they take a lower payment for a certain amount of time? Take what you can get at this point.
4. Put the Plan In Action
Pay as much as you can on the highest interest debt, such as a business cash advance, while paying the minimum on everything else. When the highest interest debt is paid off, take that money, put it toward the next highest interest debt, and continue “snow balling” your small business financing obligations are gone.
5. A Word of Warning
Continue to run your business. Be realistic by not committing so much to debt service that you cannot run your business on a day to day basis. This may not be a time for growth, but as debt disappears, the time for growth will come.
When it does, Biz2Credit is here to help. Our network of over 1,300 lenders offers financing options for every business and every season. Whether you are financing a law practice, looking for small business loans for Latinos, or need commercial real estate financing, we have lenders that can help. Visit Biz2Credit.com today to find out more.