If you’re looking to build business credit quickly, you’ve come to the right place. In this step-by-step guide, we will walk you through the process of establishing business credit and getting access to the best business loans and credit cards. Building business credit is essential for any entrepreneur who wants to take their business to the next level. So let’s get started!
The first step in building business credit is to get a Dun and Bradstreet (D&B) number. D&B is the leading provider of business credit information, and they will assign you a unique nine-digit number that will be used to track your business credit history. To get a D&B number, you’ll need to create an account on their website, which is free. They offer paid services that claim to help you build business credit faster, however these programs are pretty expensive and ultimately, if you’re a new business, the free version is enough.
Once you have your D&B number, the next step is to start building your business credit profile. This involves adding positive information about your business to the various credit reporting agencies. The most important of these agencies are Experian, Equifax, and TransUnion. You can add information such as your company’s name, address, phone number, website URL, and the date your business was founded. You should also add any trade references (businesses that you have done business with in the past) to your credit profile. Through the D&B portal and Nav.com, you can also report sales and profit & loss history which can help build your profile.
It’s important to note that it can take some time for your credit profile to build up enough history for lenders to feel comfortable lending money to you. However, if you follow these steps and continue adding positive information to your credit profile, you’ll be on your way to establishing good business credit!
If your personal credit is good, you should look into opening a business credit card with American Express. In addition to great benefits, you can get approved for an American Express business card based only on your personal credit, however the card will begin to build positive credit for your business.
You might also want to approach your bank about business credit cards. A business credit card not only helps manage cash flow – a good rule of thumb is to pay for everything you can on your business credit card and not use cash in the bank, and then pay the card off at the end of the month. This will keep your bank balances healthy while establishing positive usage and payment history with the credit card issuer — which in turn builds your business credit.
Building business credit is essential for any entrepreneur who wants to take their business to the next level. By following the steps above, you can begin to establish good business credit and get access to the best loans and credit cards. Remember, it takes time and effort to build up a good credit profile, but if you stay committed, you’ll be on your way to success!
