2020 offers new and exciting opportunities for entrepreneurs to build business credit and get approved for business loans, credit lines, credit cards, and other resources they need to operate and grow their companies. Business Credit Advisors
helps business owners to build strong business credit profiles even when they have poor personal credit scores. Consider the following insider tips to (finally) start building business credit this year.
Building Business Credit Tip 1: Get an EIN
An Employer Identification Number (EIN) is a federal taxation number for a business much like a social security number is for an individual. You're going to need one to start building business credit. They are free, fast, and easy to obtain from the IRS. Click here
to go to the IRS's site.
Building Business Credit Tip 2: Get a DUNS Number
DUNS stands for Data Universal Numbering System. A DUNS Number is a unique 9-digit identifier that represents a business entity. DUNS Numbers are issued by Dun & Bradstreet (D&B), one of the world's most recognized business credit reporting agencies (CRAs).
Most business lenders and creditors require an EIN and DUNS Number from applicants seeking money loans or credit lines. More than 330 million global businesses have DUNS Numbers already. Get one quickly, simply, and free by visiting D&B here
Building Business Credit Tip 3: Open a Business Bank Account
You're going to need to start separating your person from your business. Your company needs to become an entity that is separate from you. One way to begin this process is to open a business bank account. You will need your EIN and other relevant information to do so. Be sure to open the account in the exact same name you used to register your EIN and DUNS Number.
Building Business Credit Tip 4: Get a Business Phone Line
Establish a dedicated phone line for your business. It does not have to be a cell phone or landline. Consider using an online VOIP service. The process is fast, easy, and inexpensive. It helps to further separate you from your company.
Building Business Credit Tip 5 Establish a Separate Business Address
You will need to establish a business address for your company. If you work from home, you can get a unique business address via one of the various virtual office services available online. These services offer great value and can help to solidify your company as a legitimate business entity.
Building Business Credit Tip 6: Apply for Starter Vendor Credit
Working with starter vendors is an integral step in building business credit in 2020. It isn't something you should skip over. Starter vendors are product and service suppliers that work with start-up businesses by extending them credit lines. Sometimes, a new business has to pay cash upfront for the first order or two. Then, the vendor will typically extend a higher amount of credit via a Net-30 or Net-60 account.
Building Business Credit Tip 7: Maintaining Business Credit
Building business credit requires that you make every payment due on-time or ahead of schedule. Try to only do business with banks, creditors, vendors, and utility companies that report to D&B or other major business CRAs. Do not get overextended. Only use about 30% of the limit on a business credit card and pay it off, in-full, every payment period. Always be meticulous about maintaining your business credit rating.
Companies that Help Build Business Credit Business Credit Advisors
understands what a new company must accomplish to obtain the resources needed to prosper and grow. Building business credit is a multifaceted process and it can seem overwhelming to many aspiring entrepreneurs. However, when done correctly, it can open up numerous opportunities to obtain money and other resources that make life a lot easier. Contact us today and let us help you build business credit in 2020. Sources https://www.dnb.com/duns-number/get-a-duns.html https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online