How to establish business credit

October 20th at 7:05pm Published by firstdownadmin

Just like regular consumers, businesses can have credit reports and scores. Major business credit bureaus such as Dun & Bradstreet, Experian, and Equifax all keep a record of all payments and history of a business.  These reports are used by funders and other finance organizations to evaluate a business viability for funding and other financial transactions.

If you are looking to build or improve your business credit, you must consider the following:

  • Keep all accounts payable up-to-date.
  • Establish a good credit relationship with all vendors.
  • Obtain an employer identification number (EIN)
  • Open a business credit card and make sure that it’s paid on time.
  • Get Incorporated.
  • Increase online exposure of your company name through online business directories.
  • Monitor our credit frequently.

Once your business builds good financial reputation, it is much easier to set up lines of credit, short-term and long-term funding and you will be able to take advantage of any opportunity to grow your business with the right amount of capital.