How Do You Build Business Credit? Building Business Credit Professionally

by

Business credit is a major financial tool that can help your small business qualify for loans and other forms of financing. It’s also an essential tool for building relationships with vendors and other business-to-business (B2B) sellers.

How to Build Business Credit

The six steps below can help you learn how to build business credit from scratch:

  1. Register Your Business and Get an EIN.
  2. Maintain Timely Payments.
  3. Understand the Difference Between Credit and Charge Cards.
  4. Establish Relationships with Creditors Reporting to Major Credit Bureaus.
  5. Keep Debt Levels Manageable.
  6. Continuously Monitor and Improve Your Business Credit Score.

Establishing strong business credit is critical for any company’s success. Personal credit is often emphasized, but business credit serves unique purposes like enabling access to financing, fostering credibility with partners, and facilitating growth.

Here are six ways to get started on building business credit fast:

  1. Get an Employer Identification Number.
  2. Open a Separate Business Bank Account.
  3. Get a Business Phone Number and List Your Business in Directories.
  4. Apply for a Small Business Credit Card.
  5. Establish Credit History with Vendors Reporting Transactions.
  6. Monitor Your Business Credit Regularly and Maintain Good Payment Habits.

Leave a Comment