Understating Business Credit
Business Credit is credit that is obtained in a Business Name
With business credit the Business builds its own credit profile and credit score.
Established credit profile and score builds credibility for your business.
This credit is in the business name and based on the business’s ability to pay, not the business owners.
Building Business Credit
Start with your vendors and suppliers. Rather than paying them upfront for services or products, try to set up credit accounts whenever possible, allowing you to pay your bills within 30 days. Remember to establish credit account with companies that report trades as not all vendors/suppliers do.
And lease your equipment, rather than purchasing it. Leases are often easier to qualify for than loans or credit lines, because the equipment itself serves as the lease’s collateral.
Obtain a secured credit card from your financial institution.
Last but not least, pay your creditors on time. Historical payment behavior with previous creditors plays a major role in calculating your business credit score.
Obtaining Business Credit
Build your credit
Leverage your current accounts
Get all your finance together
Separate business from personal credit
Justify the amount requested
Show a plan on how the money will be used