Guide to Business Credit Score

Posted on 09 September 2020 (0)

As a small business owner, you are more likely aware of the importance of financial management. When it comes to financing a business, it’s very important to understand what we mean by business credit score. Businesses such as Panama tow truck came about as a result of prudent financial management. A business credit score is a measure of how creditworthy business is. Creditors and lenders make use of credit score to evaluate the eligibility of financing a business. The score will vary based on different evaluation methods.

Understanding business credit score

It is important to understand what a good credit score means for businesses. Your score is key to the kind of finances your business can get. It plays a crucial role in the growth and success of your operations. It is different from personal credit score which is tied to your social security number.
A business credit score is calculated in a number of ways. After you start running a business, you will develop business credit based on the financial activities such as how you consistently pay the invoice on time, how you manage your cash flows, and how you manage your business bank accounts. In essence, all your business financial activities will have a history. There are three common methods of calculating a business credit score, which include; Dun & Bradstreet, Experian, and Equifax.

There are a number of factors that impact your business credit score.

The first is time in business. When your business is brand new, your business credit score will be the lowest because you lack credit. However, this will matter less after your business reaches two years of operation. This is the period banks become more willing to fund you with business loans.

Another factor affecting the credit score is your payment history. Your consistency in paying bills on time and every time is the single most important factor that will impact your business credit score. A single late payment can weigh heavily on your future access to capital. You need to ensure you set up a system that maintains consistent payments from the beginning of your business.
Another important factor is the credit mix. As we have initially said, you can build credit in a number of ways such as using business credit cards, taking out loans, and establishing your trustable trade lines. However, future lenders want to know that you can appropriately manage your finances in a good way given a borrowing situation. This is where credit mix comes in, and will influence your business credit score. If you can take out multiple forms of credit and manage them appropriately, you get a higher credit score.

Additionally, you should ensure there are no mistakes on your credit report. Business credit reporting is not perfect and errors in reporting happen more often than you think. You should ensure there are no errors in your credit reports. Ensure you always have a positive credit report. Manage all finances you get in a good way and pay all your dues on time.

Common Warning Signs of Car Engine Problems

Posted on 22 April 2018 (0)

Car EngineWhen your vehicle is experiencing some problems, it may be difficult to point out the exact issue causing the trouble unless you have prior mechanical or towing expertise. Your car has many systems, but the most important is the engine. The engine is the heart of your vehicles as it gives your vehicle the necessary power it requires to operate correctly. If the engine is damaged, it will have a significant effect on the overall performance of your car.

Let us look at some of the common warning signs of car engine problems.


Check Engine Light Turns On

The dashboard warning lights in your car alert you about problems it detects from the On Board Diagnostics System. If any of these lights turn on, you should not dismiss it. Ignoring these lights could cause more damage to your engine and even other parts over time. Different problems can trigger a check engine warning light. This can happen if oxygen sensor needs to be replaced when the mass-airflow sensor needs to be replaced, among others.


Engine Running Roughly

If you notice your car’s engine is running roughly or inconsistently, then there is a problem brewing. Listen to any sound your engine produces while driving, and if you notice that the engine is struggling, or it has lost its power as the revs increase, then all you need is engine tune-up. Other common solutions may be to replace the spark plugs, check the fuel pressure or replace your engine coils.


Car Making Strange Noises

EngineIf your vehicle is making a strange noise, there is a need to get worried. If your car experiences a knocking noise coming from the bonnet, that can be a sign of a dying engine. This noise can be caused by wear or damage to your engine’s mechanical parts such as the bearing, pistons and other moving parts. If you hear or notice your car has some strange noise coming from the bonnet, the best thing you should do is to take your car to a mechanic.


Car Using More Gas than Normal

If your car is experiencing an increased fuel consumption than normal, it might be a fault relating to your engine. If this abnormal gas usage is coupled with visible check light engine or other engine related problems, what you can do is to have your car checked by a professional mechanic. Other common engine problems include a loss in engine power, smoke coming from your exhaust or smell odors from inside the car.


Basic Automotive Knowledge Every Car Owner Need to Have

Posted on 10 April 2018 (0)

File:Porsche Tire Pressure Gauge (Owning a car is probably one of the best feelings we have all had in our lives. However, it is important to have some basic knowledge about the maintenance of your vehicle to avoid some serious problems. Sometimes we ignore the small things that occur in our cars only to end up becoming serious challenges that will either result in substantial inconvenience or huge costs that were otherwise avoidable. This article discusses some basic automotive knowledge that all car owners should seek to grasp.


Check tire pressure regularly

Maintaining the correct pressure is one of the easiest, yet most ignored basic knowledge. If this aspect is not taken care of, the chances are high that you will be visiting the tire shop sooner than expected. Tires usually wear and tear faster because of unregulated pressure. Besides, the correct pressure increases the economy of fuel and helps the driver o gain better control and handling of the vehicle. Therefore, it is vital, as a car owner, to ensure that understand what is good for your vehicle tires.


Wheel rotation

The rate of wearing of the front and rear tires is quite different due to the different tasks performed y each of them. Besides, a four-wheel drive will experience a higher rate of rear tire wearing as compared to a back wheel drive. It is not advisable to allow the tires to wear out differently; there is a need to change them regularly to allow for uniformity. As a car owner, you should also inspect the tires to find out whether there are any other damages and the presence of uneven tire depth. Consult the car’s manual for the period after which you should be conducting wheel rotation.


Road hazards

road HazardsIt is not advisable to drive fast on rough roads where you will hit speed bumps and other some potholes along the way. Besides, careless driving which results in excessive braking can damage your car in several ways. Ideally, some parts of the car will loosen, making it less efficient. Moreover, you might need to visit the mechanic more often. This will lead to unnecessarily high costs that could otherwise be avoided.


Oil changing

This is probably one of the easiest tasks you will have as a car owner. Changing the oil of your car has several advantages. Firstly, it allows the engine to function at the highest level because all the parts are well-lubricated. Secondly, resistance that results in over-consumption of fuel will be limited, increasing the gas mileage of your vehicle. Lastly, you will avoid unnecessary breakdowns that are caused by old oil. Check the manual of your car to see how long you should take to change the oil, and what type of oil is suitable for your car.


Cleaning the air filter

This is also a simple task that you can do without having to consult the mechanic. The procedure is easy to follow. Cleaning the air filter is vital to allow the engine to function at the required level. It should frequently be done as explained n the user manual.

Most Overlooked Services that Could Extend the Life of Your Car

Posted on 10 December 2017 (0)

DifferentialToo often we are engaged in work and family issues that we ignore some car care services that could have helped extend the life of our cars. We concentrate on the most common tips such as oil changing, tyre rotations, and brake maintenance. We eventually find our cars in almost irreversible conditions for small things we could have done but overlooked them. The following are 5 of the most neglected services in car maintenance.


Differential Service

The differential is one of the most overlooked areas, even though its impact on life extension of the car cannot be understated. Ideally, the differential is responsible for transferring the input directly from the transmission to the car wheels. Some car models that are front wheel drive tend to incorporate this element into their transmission, while others have separate units. However, nearly all vehicles that are rear wheel drive tend to come with a rear differential. The rear end housing hosts both the differential and the rear axle. Sometimes, there is a breakdown of the gear oil, and this reduces the viscosity and its capacity to keep the differential lubricated. Therefore, it is important to service the transfer case plus the differential to avoid their damage.

Transmission Service

When the transmission is left for about 100,000 miles unchecked, it could spell a recipe for the breakdown of the vehicle. Therefore, it is not advisable to allow it stay for this long without checking for any malfunctions. Always make sure to follow the manual which explains how to change the transmission fluid and filter. Additionally, it is important always to change the level of the transmission fluid whenever you are changing the engine oil. When you notice that fluid is dark in color or appeared as if it is burnt, it normally indicates that your transmission is overheated.


Coolant System

coolantMost vehicle engines are cooled with water. For this reason, the water might cause several maladies such as rust and electrolysis which result in coolant degradation. This can lead to some parts being broken and cracks blocks. The ultimate effect is the overheating of the engine. It is advisable to ensure that the system is flushed with fresh fluid.


Air Conditioning

The AC mostly switches off during extreme heat or cold. Avoiding this problem through basic tips is easy. Ideally, there is oil in the compressor that helps lubricate all the moving parts. Normally, most people use the AC during the summer. So, this problem is common during this time where the oil drains away. It is important to switch on the AC at least 20 minutes every month to keep it active.


Brake Service

The brake fluid has the capacity to absorb water from the atmosphere because it is hydroscopic in nature. The reservoir is not sealed like the hydraulic system. Thus, the water pulled from the outside can cause corrosion in the internal parts which could lead to the damage of the brake system. Always replace the old fluid with a new one.

How to Clean Your Car’s Air Filter

Posted on 08 December 2017 (0)

air filterIf your car air filter is dirty, consider is useless. It is like having none. It is important always to ensure that your air cleaner stays in the best condition for it to function properly, else you risk a car breakdown, which can result to towing your car. There is no specific period at which it should be cleaned. It depends on where you are driving your vehicle; if the road is dusty, you may be required to frequently do it compared to a tarmacked road. Moreover, always consult your owner’s manual to know when you should do it specifically for your car. The following are five ways and steps to cleaning your car’s air filter.


Washing or vacuuming

There are two major ways of cleaning your air filter. You can wash by using a cleaning solution like a concentrated detergent like soap. One advantage of this method is that it makes the filter cleaner than any other method. However, it will take you more time, and if you return it wet, it can damage the engine. The second one is by vacuuming the filter. Even though it is not the cleanest method, it is relatively fast and has no harm to the system. Therefore, you make your choice depending on what you need for your car.


Start by Locating and Removing the Filter

You need to consult your manual to know where the filter of your car is located. If you do not have it, search on the internet or inquire from your mechanic during the servicing of your car. Normally, it is not hard to find it because most of the cars have their filters in a little canister. You can either open with a wing nut or use several clamps to remove it. When you see it, just pull it out.


Clean the filter

CleanIf your choice is to wash it, dip the filter in a bucket that has a soapy solution. After that, swish it for some seconds and put it out. Then, shake it vigorously to remove as much water as possible and try to dry it with a towel. It is paramount to let it dry completely because, if it is returned to the engine when it is still wet, it will likely damage it by bringing a corrosion effect. For those who like vacuuming, run the cleaner over the filter. This should take you about one minute. Repeat the process on the other side. Then, remove anything which has remained on the outside.

Clean the Canister

If you only clean your filter and leave the canister dirty, you have most likely done nothing. This is because it will most likely contaminate the clean filter. Therefore, it is important to clean it using a soft cloth. If you use a wet towel, ensure that it dries completely before returning the filter.

Replace your filter

After both the canister and filter are dry, it is time to return the latter to its former position. Typically, reverse the same process that you used to open remove it. It is worth noting that, if you want to change your filter, use the same process, but leave out the cleaning.