Top 10 Credit Tips You Should Know

The followings are top 10 credit tips to assist businesses that are seeking finance or refinancing:

1. Start early: the risk of not being able to refinance is placing many businesses of all sizes under intense scrutiny to demonstrate that they have addressed refinancing risks. Lenders now have less capacity to lend and a lower risk appetite, so it may take time to effectively address the refinancing risk.

2. Ensure your business is ready: it is important to ensure statutory payments are up-to-date and payments to trade creditors are within expectations. Obtain evidence to demonstrate that tax payments, workers’ compensation scheme payments, superannuation/pension/provident fund contributions, and aged creditor listings are in order. Make sure financial statements reflect the trading position, and that you disclose any other information that may be relevant to a lender, including any pending litigation the business is involved in.

3. Consider expert assistance: given the current state of the debt market and the fact that many CFOs or equivalent may not have refinanced under such conditions before, a business with significant financing or refinancing needs should consider seeking help from external advisors.

4. Spread the risk: consider using multiple lenders to meet financing or refinancing needs. In using multiple lenders, you should have a number of lead lenders to reduce the risk of one lender withdrawing.

5. Consider alternatives: with debt finance scarce and possibly expensive, other options to finance debt may need to be considered, such as a working capital improvement program, liquidating assets, raising new equity and changing strategic direction to reduce the need for finance.

6. Be familiar with industry gearing standards: if your gearing ratio is high, it is likely to lessen the chance of accessing finance or refinancing. Methods of reducing your gearing ratio include liquidating assets, raising new equity or using spare working capital to pay down debt.

7. Ensure all covenants can be met: stress tests your forecasts to see under what circumstances covenants may be breached. It is important to stay on top of covenants and act if you are close to breaching one.

8. Maintain banking relationships: it is important to maintain a close dialogue with current and potential leaders. Keep all lenders well informed.

9. Maintain governance: make sure the board is fully aware of the issues and the risks around financing and refinancing, including the possible need to change the strategic direction to reduce the need for finance.

10.Stay informed: keep up-to-date with volatile and changing debt markets in order to assist in decision-making on accessing finance and refinancing.

Cheah has been writing articles online for quite sometimes. He is not just an author specialize in finance, skin care, beauty and fitness, his newest interest is in home renovation. Please visit his

Posted in Uncategorized | Comments Off on Top 10 Credit Tips You Should Know

Fix My Credit – Tips

A myriad of people have bad credit and you may be among those who are looking for ways to “fix my credit score”. Fortunately, there are some tried and true tips that you can follow to raise your credit ranking in order to qualify for better loans at friendlier rates, better jobs, and more. A good credit score is considered to be 750 or more on the FICO scale; a bad credit score is usually considered 620 or less. Let’s look at some ways that you can fix your credit score:

“Fix My Credit” Tip #1: Assess the Damage

While your credit score may be damaged, what’s the true extent of that damage? You will never know until you look at your credit report yourself. It is recommended that you check your credit report with each of the “big three” credit reporting bureaus (Experian, Equifax, and Trans Union) because each may have a different view of you as a borrower. Look for errors, duplications, and misinformation on your report and notify the bureau that is holding the questionable notation in writing or using an online dispute form. The bureaus are legally bound to investigate all disputes that you launch.

“Fix My Credit” Tip #2: Open Secured Credit Card Account(s)

A secured credit card is a credit card issued to you based on the deposit that you make with the bank or lender who issues the card. One or more secured credit cards being paid on at regular intervals is one of the fastest proven ways to add significant points to your FICO score. Remember, however, that failing to pay these cards as agreed can also damage your credit ranking – just like a regular card can. Look for a secured credit card that features monthly reporting to the bureaus for fastest credit fixes. Treat your secured credit card like any other – never exceed more than 1/3 of the available balance each month and send your payment in early or pay online to avoid having a late payment notation.

“Fix My Credit” Tip #3: Rid Yourself of Debt

Your creditworthiness is determined in part based on your available credit to debt ratio. For this reason, paying down the debts that you owe on charge cards and other revolving credit lines is important. Lowering your credit to debt ratio raises your credit score and makes you look like an appealing borrower who knows how to manage his or her debt effectively.

Posted in Uncategorized | Comments Off on Fix My Credit – Tips