Building Business Credit
Start Building Business Credit And Get Up To $25,000 In Credit lines
Building Business Credit-
To understand what it takes when it comes to building your business credit you first must understand why its important to have business credit.
- Protect your personal credit score
- Protect your personal assets
- Get more access to more business capital
- Builds credibility
- Allows for you to take advantage of more business opportunities
- Allows your business to bid and win government contracts
- Makes the company look complete for potential buyers or investors
- Must have business credit to get an SBA Government Guaranteed Business Loan
Building business credit takes time. The goal is to make sure that you are compliant with all the reporting agencies so that they know who you are. You then will strive to create good business credit scores with Dun and Bradstreet, Experian, and Equifax. These are the three biggest credit reporting agencies. Only 10% of the nations creditors actually report to the credit reporting agencies. So it’s important to do business with vendors and lenders that do in fact report to the credit agencies so you start building your business credit. Any organization out there that says they can get you a great business or personal credit score in thirty days is not what you want. You want to make sure you do it the right way.
Building business credit can be broken down into six steps.
Your Fundability- The fundability part of building business credit checks to see how fundable your business is today. You need to consider how banks and lending institutions are judging your business as it stands currently. What bucket do you think you fall in? Times are tough and lending guidelines are more strict then they have ever been. Would you lend you money?
Credit Agencies- Credit reporting agencies is where banks and lenders are going to go when they want to pull information on your business. You need to make sure that all the information these agencies have is positive correct information. You can check this data by using BizArchy’s business credit building program or you can purchase credit reports and review your business data.
Vendor Credit – Not only do banks report to credit reporting agencies, other organizations you do business with also might report your timely payments to the credit reporting agencies. If you purchase products wholesale from a certain vendor, they may or may not be reporting your payments. To build business credit you need to do business with vendors that will report your data to the credit reporting agencies.
Credit Cards – Credit cards are a great way to build business credit and build business credit fast. Credit cards are one of the most used cash flow tools in the world. Most lenders that offer credit cards will report your payments to the credit reporting agencies.
Bank Credit – Having a good standing with the bank that you have chosen to do your business banking with is extremely important to building business credit. Having a good standing with your bank will allow your business to borrower more money at better rates.
Your Foundation – In your business foundation you want to make sure that you have everything you need to build a good business credit score. The foundation consists of items such as your incorporation, your business location, being listed in certain directories, and making sure you have the proper financial accounts established to do business.
Here are a few different articles, webinars, and podcasts on building business credit. Check them out and get started on building your business credit today.
How Long Does Building Business Credit Take?
Small Business Credit - Is It Different From Big Business Credit?
How To Get Business Credit
How Business Credit Ratings Can Help You Grow Your Business
What is a Business Credit Report?
Back To Business Credit
