• Home
  • Authors
  • Write for us
  • Advertise
  • Contact
  • Privacy Policy
  • Terms and Conditions
Thursday, April 15, 2021
No Result
View All Result
ABC Money
PR Fire Press Release Distribution
  • News
  • Business
  • Economics
  • Finance
    • Investment
    • Tax
    • Mortgage
  • Property
    • Utilities
  • World
  • Technology
  • Fashion
  • Health
  • Holidays
  • News
  • Business
  • Economics
  • Finance
    • Investment
    • Tax
    • Mortgage
  • Property
    • Utilities
  • World
  • Technology
  • Fashion
  • Health
  • Holidays
ABC Money
No Result
View All Result
Home Business

5 Ways to Build Business Credit

by Debora Marcus
24/02/2021

Starting a business comes with many challenges, but overcoming these challenges is a big part of your entrepreneurial journey.

Some people choose to go to school before venturing into the business world, but it’s not completely necessary. Luckily, you’ve got the world wide web at your fingertips, and you can learn just about anything with the right amount of grit and determination.

After starting your business, you’ll quickly discover you need business credit to make things run a little smoother.

But how do you get business credit when you’re brand new to the scene?

We’re glad you asked. Let’s cover a few things you can do to generate and build business credit.

1. Check Your Credit Score

When you’re young, you hear so much about credit, but you don’t truly understand how important it is until you need it when you’re trying to purchase a home, car or need it for business proceedings.

The first thing you should do is check both credit scores—personal and business credit. If you don’t see anything for the business credit score, it means you haven’t generated any yet.

Signing up for a credit monitoring service is an ideal first step because it allows you to keep an eye on your score. You’ll have to work off your personal credit score until you generate business credit.

RelatedPosts

Benefits Of Choosing A Good Online Payroll Management Software

5 Things to Consider in a New Supplier

How to Make Sure Your Business is Safely Covered?

Outsourcing Product Development- A Roadmap To Success For All Startups

Load More

Most companies want you to have at least a 700 credit score to be approved for any type of business loan, line of credit, or lease.

2. Open a Business Checking Account

After you check your credit scores, it’s time to open a business checking account.

The bank you use for your personal checking account is an excellent place to start looking. See what types of accounts they have, how much they charge in fees per month, along with any other incentives down the road.

It’s beneficial to keep your personal and business finances separate. In doing so, you’ll make it easier for yourself around tax time since everything runs through your business account.

When you pay vendors, order supplies, or take payments, you want it all moving through your business account.

3. Apply for a DUNS Number

You’re probably familiar with Experian, Equifax, and Transunion since they’re all credit monitoring systems for personal credit.

A DUNS number will get you on the right track to establishing business credit when it comes to business credit. Once you develop relationships with vendors, you can ask them to attach your DUNS number to your account.

Your DUNS number also comes in handy when you want to apply for a government contract or grant.

Here’s what you need to apply for a DUNS number:

  • Business name
  • Business address
  • Phone number
  • Business owner’s name
  • Year founded
  • Legal business structure
  • Number of employees

The best part is it’s free, which is a rarity when it comes to being in business.

4. Work with Vendors

No matter what type of business you have, you’ll have several vendors you work with to fuel your business. Creating healthy business relationships with vendors is a vital step in building business credit.

You want to look for vendors that offer business credit that you can attach to your DUNS number to boost your business credit.

Some businesses offer net 30 accounts you can use to get the ball rolling. This is a great starting point if you’re somewhat new to the business world.

5. Apply for Business Credit Cards

There are many different types of business credit cards, but it helps to know which ones to apply for. For example, if you operate as a sole proprietor, you may not qualify for some of the same business credit cards that some bigger corporations acquire.

Start with your banking institution and inquire with your personal banker about options best suited for your business.

If you haven’t built up much business credit, your personal credit score determines your eligibility. Most business credit cards require a minimum 700 credit score with positive payment history.

Don’t rush the process of applying when you aren’t entirely ready. Each time you apply for credit, your credit score takes a hit from the inquiry. So make sure your score, payment history, and resolve any outstanding debts before doing so.

Final Thoughts on Business Credit

Some find the idea of building business credit intimidating, but if you familiarize yourself with the ins and outs of business credit, it’s not so bad.

If you find the stress taking over, it’s necessary to set time aside for relaxation. Whether you choose to meditate, exercise, or put some tasty CBD gummies to work, make sure you’re finding and utilizing a much-needed outlet.

However, many entrepreneurs use CBD for its calming effect, especially taking a smaller amount to take the edge off and stay productive.

You’ll figure out a process that works for you, so when you’re ready to apply for a line of credit, working capital, or find a building to lease for a storefront, your business credit is there to help.

Previous Post

Your 2021 Horse Racing Calendar

Next Post

3 Engraving Techniques That Cover a Broad Range of Uses

Related Posts

Benefits Of Choosing A Good Online Payroll Management Software
Business

Benefits Of Choosing A Good Online Payroll Management Software

15/04/2021
5 Things to Consider in a New Supplier
Business

5 Things to Consider in a New Supplier

14/04/2021
How to Make Sure Your Business is Safely Covered?
Business

How to Make Sure Your Business is Safely Covered?

15/04/2021
Next Post
3 Engraving Techniques That Cover a Broad Range of Uses

3 Engraving Techniques That Cover a Broad Range of Uses

WFH Hollywood Edition: How COVID-19 Has Affected the Film Industry

WFH Hollywood Edition: How COVID-19 Has Affected the Film Industry

How To Create a Budget (The Complete Beginners’ Guide)

How To Create a Budget (The Complete Beginners’ Guide)

Latest News

Changpeng Zhao Confesses His Fortune Lies Almost 100% In Digital Assets

Changpeng Zhao Confesses His Fortune Lies Almost 100% In Digital Assets

10/04/2021
Design Points to Keep in Mind While Customizing Yard Signs

Design Points to Keep in Mind While Customizing Yard Signs

15/04/2021
BPO Philippines: The Digital Economy Drives Growth

BPO Philippines: The Digital Economy Drives Growth

15/04/2021
How Long Does It Take to Repair Credit?

How Long Does It Take to Repair Credit?

15/04/2021
Which One is a better choice: Gummies or Delta 8?

Which One is a better choice: Gummies or Delta 8?

15/04/2021
Benefits Of Choosing A Good Online Payroll Management Software

Benefits Of Choosing A Good Online Payroll Management Software

15/04/2021

Social

Contact

For editorial enquiries:

editorials@abcmoney.co.uk

For advertising enquiries:

advertise@abcmoney.co.uk

Top Topics

  • News
  • Business
  • Finance
  • Property
  • Technology
  • Investment

Guides

  • Best UK Bridging Loans
  • Best UK Secured Loans
  • Best UK Commercial Mortgages
  • Best UK Business Loans
  • Best UK Payday Loans
  • Best Sites for International Money Transfers
  • Best Press Release Distribution Service

Social

  • Home
  • Authors
  • Write for us
  • Advertise
  • Contact
  • Privacy Policy
  • Terms and Conditions

© 2020 ABC Money

No Result
View All Result
  • Write for us
  • Contact
  • About Us
    • Authors
  • News Desk
    • Business
    • Finance
    • Property
    • Technology
    • Investment

© 2020 ABC Money

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.