Companies that help build business credit can be very cost-effective for new small business owners who want to scale up their operations yet lack the working capital to do so. Building excellent business credit is important because it can lead to reduced business insurance premiums and interest rates. It also helps you to maximize your funding potential.
Benefits of maintaining excellent business credit
As it is with individual consumer credit scores, legitimate businesses are also rated on their financial responsibility from major credit reporting agencies like Dun & Bradstreet®, Equifax®, Experian®, FICO®, and TransUnion®. Maintaining excellent business credit can qualify you for leases, loans, and credit lines that you may not qualify for as an individual.
How to get business credit
One of the most important steps of establishing business credit is to register your company as a corporation or a limited liability company (LLC). These legal entities can establish a credit history that is not related to the owners' private Social Security Numbers (SSN). Note that it's more difficult to establish a separate line of legal business credit if you are operating a sole proprietorship in your name.
Other ways to build business credit include:
● Open a business banking account
● Establish trade lines with vendors and suppliers
● Set up a separate phone number for your business
● Obtain a federal Employer Identification Number (EIN
● Establish a business credit history with major credit reporting agencies
● Register your business in Google My Business (GMB) and other major directories
If you obtain a business loan, make sure that the lender is one that reports to business credit reporting agencies. Pay every loan installment and your other bills on-time and maintain clear records with the reporting agencies.
Helping you build business credit
Business Credit Advisors
is a top-rated company that helps build business credit to scale your operations up. Our friendly experts are here to answer your questions and help your new or established company qualify for low-rate business loans and other financial opportunities to meet your needs. Contact us today and start a conversation! Sources IRS Credit Karma