If you want to request financing for your business and get the best possible credit report, there are a few things you should do to increase your chances of getting it.

According to INEGI data in Mexico, more than 39,385 companies requested financing in 2021, with a total of 181,777 credit applications, and while 95% of these were approved, 5% were rejected, resulting in more than 5,000 applications rejected.

Among the reasons for rejection when applying for credit are a large number of debts and a poor or non-existent credit history. In situations like this, the question of whether it is possible to escape the situation and how the score can be improved so that financial entities provide financing arises.

What is the credit score?

It is a numerical indicator used by lenders or banks to evaluate potential clients based on the management of their financial obligations.
The credit score is one of the decisive factors in determining whether or not a business can be granted credit and under what terms, so that it does not pose a problem for the entity providing it.
This is dynamic and increases or decreases based on the borrower’s behavior, indicating that if you have a low score, you can work to improve it.

4 ways to improve your credit score

The following are some actions you can take to improve your credit risk assessment and your chances of obtaining financing, as well as accessing better conditions for it.

1. Generate history

As previously stated, one of the reasons for credit application rejection is a lack of history, that is, there is no information on the organization’s financial performance for lenders to consult.
So the first step is to begin collecting data, and a good way to do so is with a business credit card.

2. Pay in full and on time

It is critical to consider the dates by which you must pay what you owe. Delays have an impact on your history, which is reflected in your credit report.

When applying for business credit, you must be responsible, and you must comply on time in order to build a good history and not harm financial institutions or your credit score.

3. Do not exceed in applying for credit

Having multiple financings or applications open at the same time can have a negative impact on your company’s image.
It is possible that during the credit risk assessment, it is determined that your company does not have adequate debt and financial control, which is interpreted as a risk.

4. Keep an eye on your debt level.

Take care of your borrowing capacity. The closer you are to reaching your company’s maximum capacity, the more likely a payment default will occur.

Consider keeping your debt at 30-40% of your available resources.

CRiskCo API Solution

Working with an API as a lender allows you to assist businesses in obtaining financing. A tool like CRiskCo’s assesses credit risk based on existing data on your financial movements, even if the requesting organization has a poor track record.

CRiskCo’s API provides benefits such as an AI-powered processing system and its own Fin Score (credit score) to determine the viability of credit. Use it in your company.