Building Business Credit: 3 Steps to Start

"You must gain control over your money or the lack of it will forever control you."

One of the most common challenges for new and established businesses is keeping a strong credit rating. Strong business credit supports expansion projects, new ventures and a more diversified portfolio. Without it, financing your business is difficult. For most owners, this is not a walk in the park.

How to establish good business credit

1. Get your Employer Identification Number (EIN). It prepares you for tax reporting and makes your business a separate entity, so you can manage business credit apart from your personal credit.

2. Build strong supplier and vendor relationships. Create a network of vendors and set up clear credit terms with them. Prioritize vendors who report to the business credit bureaus.

3. Monitor your credit and financial capacity. Pay loans and credit on time to avoid delinquency reports that hurt your rating. Diversify your business credit with business credit cards or a line of credit, and monitor your score to catch problems early.

Get support

Fresh Start helps business owners build a complete business credit plan. Our Business Startup Services guide you through maintaining business credit along with the other steps of starting up. We also offer credit education to help you understand your credit report.

Ready to build credit with a plan? Book a Strategy Call with Dr. Eukeethia B.