How Important is a Good Credit Score for Your Business after Singapore Company Registration?

Money is the lifeblood of every business. No one can start a business without having a considerable amount of money. So, if you are planning to get your feet wet in the business by applying for Singapore company registration, make sure to have an enough capital fund in your hand. You may accumulate the required capital either by securing a loan from bank, creditor or private financial centers. Fortunately, there are plenty of funding assistance programs from Singapore government for start-ups. However, maintaining good credit score is important for your business venture. 

You cannot fund your startup independently unless you are a filthy rich person. 

Securing a loan is the best way to get the business started. The first question any money lender or creditor will ask you is “What is your credit score?” Your credit score will reveal your financial standing. They will come to know how good you are at managing the money? Your credit score will play a vital role in deciding whether to approve the proposed loan or not. Thereby, if you are planning for company registration Singapore to run a business in the city-state, make sure to maintain a good personal credit score. 

Know What goes into a Good Credit Score

You would not be able to maintain a good credit score unless you know what goes into a good credit score. Try to know how to calculate the credit score. There are a few key elements are taken into the consideration when calculating the credit score – Your Payment history, credit age, level of debt, etc. 

Pay Your Bills on Time

Paying bills on time is paramount to build and maintain a good credit score.

Credit scores are calculated by what is in your credit report. If you are bad at paying bills, it adversely affects your credit score. Since bill payment history determines your credit score, make sure to handle this aspect carefully. 

A solid bill payment history lets the lender or creditors know that you have enough cash to manage your expense. It increases the chances of securing a business loan to set up a company in Singapore. You may avoid the late payment by signing up for automatic payments. If you are running short of money to make the payment, the least you can do is to pay the minimum due amount to manage the total outstanding on a monthly basis. However, if you have the sufficient amount of money, never go for the minimum due amount. 

Manage Your Debt

All kinds of debts including credit card balances, loan balances or lines of credits affect your credit score. Having more debts can reduce the credit score and make it difficult to manage your monthly payments. The lower your debt, the easier will be to gain a good credit score. 

Minimize the Credit Usage

The higher the credit limit usage is, the worse your credit score will be. Your credit balance should be as low as possible to maintain a good credit score. For the creditors, you are a riskier borrower if you exceed the credit limit. It reduces the chances of getting the business loan approved. 

So, if you want to fulfill your dream of company registration Singapore, make sure to maintain a good credit score by not letting your credit debt exceed the limit. If you are facing problems in maintaining the ratio, you better take some time to pay off the excess amount and raise the credit score. Once your credit score improves, you can approach to any lender for obtaining the loan. 

Watch Your Credit Reports

Keeping track of your credit report is essential when you plan to do business in Singapore. Just because the reports are done by the professionals does not mean it will be flawless. Errors in the report may lead to dropping credit score at your end. Fraudulent activities like identity theft and credit card fraud may lead to inaccurate data on your credit report. Thereby, keeping a constant eye on the report is a must to avoid errors. If any error appears, make sure to rectify them as soon as possible. 

Do not let poor credit score ruin your dream of Singapore company registration. Make sure to follow the tips mentioned above to bolster your chances of obtaining a business loan by having a solid credit score. You may also take the assistance of expert like SBS Consulting to pave a way towards success.

Contact Info:
SBS Consulting Pte Ltd
Visit: https://www.sbsgroup.com.sg/
High Street Centre,
#17-02, 1 North Bridge Road,
179094 – Singapore
Phone: +65-6536 0036
Email: info@sbsgroup.com.sg