Steps To Building Business Credit

When Starting a business we tend to skip steps or just do the bare minimum but along the way I've learned that skipping the small steps holds your business back from the potential and growth . So Here are 7 steps that you can take when starting a business that will help you in the long run when it comes to building legitimate business credit.

Having access to business credit is and will be the lifeline for your business. It will helps you to obtain the capitol you need to expand your brand and business. With business capitol you will be able to cover day to day expenses, purchase inventory, hire more staff and allow you to conserve your on hand cash to cover your cost of doing business on a day to day....

1. Set Up A Legal Entity

When starting your business and want to build some business capitol set up a legal entity such as : LLC, Corporation or Non- Profit so that you can begin the process of building business credit.

2. Set Up Your EIN

Starting a business everyone needs a EIN. A EIN is a social security number to your business. That number is how companies like banks to track your business. You need it to prevent business penalties when you file taxes. Helps to prevent identity theft, helps to speed up business loans applications, build trust with vendors, establish credit, makes it easier to hire employees. filing for an EIN is also the only way you are able to open a business bank account which leads me to my next step in this process.

3. Set Up Business Bank Account

Sound very simple but plenty of entrepreneurs skip this steps!!

4. Apply For Your Duns #

Go to Dnb.com to file out for your duns number. Dun & Bradstreet is one of the 3 main business credit reporting agencies. The best benefit you have of establishing a duns number is that anyone seeking to better understand your business credit and credit history and credit worthiness will likely look to Dun & Bradstreet to find this information. Businesses that come in contact with the government agencies are required to have a duns number. So Go get your business a Duns #.

5. Set Up A Nav Account

This step you don't have to get but It really is helpful because they provide advice about building business credit. A Nav account will give you access to your business credit report and scores. Nav Accounts helps you build business credit by creating business tradelines.

6. Set Up A Few Net 30 Account

When your ready use your duns # to set up a few net 30 account. Start small and pay your bills early on these accounts. Making on-time payments, in this case within the first 30 days will help you business credit tremendously . It will help positive payment history for your business.

7. Apply For Secured Business Credit Card

After 6 months of on-time payments apply for a secured credit card. Verify that your net 30 accounts a new business credit card. Verify that your net 30 accounts & new business credit card reports to all 3 major business credit bureaus.

There is so much to learn about business credit and these are just a few simple steps to take to help you to get this process started . Building a strong thriving Business is a marathon and these steps will get the ball rolling to help you to start that process and build business credit.