In building your business, credit is an important piece of the puzzle as it can make larger purchases possible without having the cash on hand. Many start their company and one of the first things they want to know is how do I build the business credit. This article is for you!
After you obtain an EIN and get your business registered in the state. You want to establish an address if you haven’t. It is suggested that you establish a separate address for your business that is not your home address. This helps establish your company’s legitimacy. You should also have a separate business phone number. Your next steps would also be establishing yourself on social media and on the web. You should create a website and create professional social media accounts. These are things that I instruct my clients to do before incorporating, however, if you are incorporated and don’t have these things they are great to establish in the building of your business.
Then you want to obtain credit. The first places you want to apply for credit accounts are supply stores and fuel cards. Some of the best ones include Uline, Grainger, Staples, and any other supply stores you may need for your business. Most of these companies will establish a Net 30 plan for you. You need to pay in full in 30 days. Paying on time is important when building your credit. Second, Fuel cards are another great source for you to apply for credit for your business. Some of these merchants do not complete a personal credit check. They only checkout your company information. The third place is your banking institution. You should have opened a business bank account and this is a great place to look for credit. You can apply for a credit card or line of credit. If you have beenbanking with this institution for a specific amount of time then the bank can approve your loan based on the flow of the account. Another bank option is a pledge loan and this is based on monies that you have sitting in your account. You may have to cosign for your business for certain things during the first two years.
Hope these tidbits help you along your way in creating a successful business!
by B Marie Blaine