Running a business successfully is easier to do when it has good credit. If your business credit score is suffering, there are ways that you can make it better. By following a few tips, you greatly increase your chances of running a more financially stable business.
Check Your Own Credit First
Just like you can get a report for your personal credit, you can get one for business credit too. While personal credit reports can be obtained free you must pay a fee to get your business credit report. A thorough examination of both will show you where you stand financially.
Establish Credit For Your Business
The next step is to establish your business credit score. Some people choose to run their small businesses using their own credit when they first open. If this applies to you, it is time to start considering getting at least one credit card for your business. There are a few things you have to have done before you can start building credit. One of them is to register your business with the state if you haven’t already. You’ll then need an EID number, which can be obtained online for free.
Then it becomes time to open a separate bank account for your business, using the name it’s registered under. You’ll also want to obtain a business phone number, also using your registered business name.
Apply For Business Credit
Applying for a business credit card can help you build up a credit history to be proud of. This credit card should not be in your name, but the name of your business. Once you start using the credit and paying it off each month you are well on your way to success.
Find The Right Vendors
It is crucial to find vendors that will report your payments to the credit bureaus. This can be the fastest and easiest way to help you increase your business credit score over time. Your score will increase even faster if you pay your vendors before their payment is due.
For more information on improving your business credit score, please contact Rushview Commercial Funding.