Need Business Credit?
Business credit is very important for your company. Without it you will definitely be at a severe disadvantage. Many everyday operations in your business will be difficult without business credit. Things such as making your payroll, paying suppliers, paying the rent, and many other things require reliable business credit. Just look at the economic fallout from the big credit crunch of 2008.
There are good ways to go about getting business credit, and not so good ways. Here’s the best way:
1. File for incorporation. This is important. If your business is not set up as a corporation you should file for incorporation right away. If your business is already incorporated, you should make sure your corporate records are current and in order. Also be sure your corporation is in good standing with your bank and with the appropriate government agencies.
2. Do a complete Credit Bureau Check. This is also very important because your credit bureau records will have a direct impact on your ability to get credit. If some show up, work at getting them resolved by following the necessary steps.
3. Register with Credit Bureaus. After you have made sure all your records are in order, your corporation is in good standing, and your credit report has no bad marks against it, you should register with a number of credit bureaus or credit reporting agencies. This will help to establish your business credit profile.
4. Apply for and Obtain Business Credit. Once your business profile has been established for a few months it is time to apply for a business line of credit and retail credit cards for your business. This should not involve using your personal credit report. If lenders require personal reports or personal guarantees you may want to seek the advice of a business credit advisor.
Filed under: General Interest