A business with a shaky credit history may seem to have bleak prospects. However, if your business is in that situation, don’t worry: The following tips can help you improve your business’s credit score over time.

Don’t Take On New Credit

Many times, people facing a low business credit score feel strongly tempted to take out more credit. While the drive is understandable—access to more credit can make it seem easier to keep up with bills, for instance—the benefits of opening up another source of credit will be very short-lived. Excessive applications for more credit may damage your score even more, and if you take on more debt thanks to your new credit sources, you’ll only be deepening the hole your business is in.

Pay Down Debt

Instead of trying to access new credit, focus on paying down the debt your business is already facing. The benefits to this will be twofold: For one, you’ll start building up a history of on-time payments. And you’ll also reduce your business’s credit utilization rate. Both of those have a positive effect on a business’s credit score.

Set Up Automatic Payments and Reminders

If late payments are behind your business’s low credit score, then it may help to automate the bill-paying process. Setting up automatic payments is often a quick process that can save you tons of headaches down the road. Another option is setting up monthly calendar reminders that nudge you when a bill is due soon.

Reach Out to Your Creditors

Laura McCany, writing for QuickBooks, advises that it’s often helpful for businesses with credit issues to reach out to their creditors. Instead of reporting your late payments to ratings agencies, a creditor may be willing to set up an alternative payment plan that is easier for your business to keep up with.

It’s easier to maintain a good business credit score with the right financial partner. If you’re looking for one, reach out to LMC Alternative Business Capital.