Establishing business credit history is an important step for an entrepreneur. If you have just started a business, here are the steps that you must do.
Ensure the legality of your business. The first step is to secure all licenses and permits required by your State. This includes passing “zoning inspections”, applying for an Employer Tax Identification Number, and obtaining insurance policies for your company.
Declare the legal entity of your business. To establish your business credit history, you need to clearly declare that you are operating a corporation or a Limited Liability Corporation.
Establish partnerships with vendors and suppliers. Establish a business-to-business relationship with at least five or more merchants.
Apply for at least two business credit cards. Apply for one or two small business credit cards. As the owner of the business, your personal credit score will be reviewed to get an approval.
Register with Dun & Bradstreet. Sign up with Dun & Bradstreet- a major business credit tracker in the US. After submitting your application, you may need to wait up to 30 days to receive your official D&B number.
Choose creditors that report to the credit bureaus. The way to build business credit is to open accounts with creditors or business credit card issuers. As long as you can submit your payments on time, you should be able to build up your business credit.
Stay within your credit limit. Use your business credit card for important business purchases. You can also distribute supplementary cards to your employees. Monitor your employees’ spending habits by checking your monthly billing statements regularly.
Additionally, most issuers of small business credit cards provide an online account access so entrepreneurs can easily check their accounts without having to visit the bank or go out. For business owners with a busy schedule, being able to access their accounts online is certainly a big help.
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Pamela Williams is a Loan Consultant, Internet Marketer and Writer. For years she had helped consumers and business owners especially regarding business credit cards. This resource is dedicated particularly on business credit card reviews, articles, tips and advice, and online application so that consumers and business owners may compare which is the best business credit card for their business. Copyright 2007 |
I tried to get one business credit card but it was declined saying “Bad Credit”. That is not my issue but due to recession I lost my & investors money and gained a bad name. Your article is good to read and I’ll try it on my next venture.
@ Erik
Thank you very much for visiting this site. Maybe, you can try applying again and ask the customer service about it and for the solution, it merely depends on the credit card companies.
What creditors are giving out credit limits, so I can build my business credit. Are there any out their anymore?
@Amy
You can go to this site for more Business Credit Cards: http://www.credit.com/r/cap_one/af=p39716&ag=
Thank you for inquiring.