If you\’re looking to start a business, or you\’ve been running one for a while, then you know that credit is important. But what many people don\’t realize is that there\’s two types of credit: personal and business. Personal credit is what most people are familiar with – it\’s your credit score from the major credit bureaus like Experian, Equifax, and TransUnion. Business credit is a separate entity, and it\’s just as important as personal credit when it comes to financing your business. In this blog post, we\’ll show you how to build business credit in 9 easy steps!
1. Incorporated your business using a site like LegalZoom.com is a great option. This will give your business its own legal entity, which is important for business credit purposes.
2. Obtain a federal tax identification number (EIN) from the IRS. You can apply for this online, and it\’s free!
3. Apply for a D.U.N.S at D&B. D&B is a business credit agency, but they don\’t actually grant credit to businesses. What they do is provide business with the data to decide whether or not to extend a line of credit to another business. A DUNS number is a unique 9-digit number that will identify your business to creditors. Your DUNS number will be used to create your business credit file, similar to how your social security number is used to identify your personal credit reports. (Note: You\’ll need a bank account in the business name, as well as a phone number. It is a good idea to have both separate from any personal accounts)
4. Open a business bank account and get a business credit card. This will help you start establishing a positive payment history, which is one of the key components of a good business credit score.
5. Have a professional business email address. Do not use Gmail or Yahoo. Example: Harris@mybusinesswebsite.com. This helps to add an extra level of professionalism when reaching out to potential creditors.
Ask for trade references or tradelines
6. Pay your bills on time! This one is critical. Payment history is the most important factor in your business credit score, so make sure you\’re paying all of your bills on time, every time.
7. Check your business credit reports regularly. You can get free business credit reports from the major credit bureaus – Experian, Equifax, and TransUnion. Keep an eye on these reports and dispute any errors you see.
Building business credit is a critical step in growing your business. By following the steps above, you can establish a good business credit score, which will give you access to better financing options and help you grow your business. Good luck!
Bonus Free Personal & Business Credit eBook @ https://bit.ly/3S7TPb4 Warning: Please read this eBook before applying for credit.
Disclaimer: This article is intended for informational purposes only and should not be construed as financial or legal advice. Please consult your financial or legal advisor for specific advice regarding your situation.
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