Having a good credit score can help your supply chain. Read here.

In order to get your supply chain to increase, you need to have a good credit score. This is because most prominent businesses require a financial risk review before taking on any new supply orders. They want to be sure that you can be able to pay for the supplies you get without fail. Therefore, you need to start by working on improving your credit before you start making bids.

business creditMost people only concentrate on increasing stock and do not pay any attention to their credit scores. This is a grave mistake since you could have a constantly dipping score without realizing it. You might think that having a low score will only affect the chances of you getting financial help in the form of loans. However, the reality is that a low score affects other aspects of your business like supply chain and can bring down your business.

This means that having a good score can affect your ability to access goods and even utility services such as telephone. The suppliers normally get information about your scores from credit rating agencies. So you will have to ensure that when the suppliers do look into your credit history, they find nothing to worry about.

There are a number of ways you can improve your scores and improve your supply chain. The first thing you need to do is start paying attention to your credit report. This shows your credit history and tells you whether you need to start making changes. If you have a low score, you need to pay off your debts. You can do so by ensuring that you make payments on time and avoid going over your credit limit.

Do not be tempted to open many new accounts in a bid to cover up your credit problems. You should limit the number of new accounts you open and once you do so, keep an eye on the credit score. Always ensure that each time there is a change you note it.

if you find yourself heading towards debt, one way where you may be able to reduce your monthly repayments by extending your length of repayment is to consider a consolidation loan. For more information on this, go to www.easyloanscompany.co.uk and read the very helpful articles on the subject.

How does cash flow affect your business and supply chain?

One of the many things that a business must keep in mind when dealing with day to day accounting is cash flow as this can have an impact on the supply chain and ultimately determine whether or not the business succeeds. Cash flow is the term for making sure that a business has enough ready money to meet any outstanding debts and obtain new stock and balancing money spent with money received to ensure all obligations can be met.supply chain

Many small businesses that are just starting can experience cash flow difficulties in the first two years. This is because there is a large initial outlay in buying stock etc but only a small customer base until the business expands. Many businesses also offer credit terms to customers to encourage large orders, but this can be a problem and affect cash flow if those customers do not pay on time. Apart from time and money spent on chasing the debtors, having a large debtors balance can affect the supply chain as the business will not be able to pay its own debtors. It is very important to have good credit control systems in place to try to prevent this.

The state of the economy at present can make it more difficult for small businesses to succeed if they do not have a good cashflow. Many suppliers are becoming more strict on offering credit terms to new businesses but many customers expect long payment terms in order to pay. This can often mean that a business looks good on a balance sheet, as debtors are counted as an asset along with cash in the bank, but cannot meet the wage bill as there is not enough money in the bank. This can lead to many small businesses failing and having to close.