Good business credit improves your accessibility to financing for your business. With a good business credit score, you may be able to secure a loan without having to use your personal credit. Here are some tips to establish and maintain good business credit.

Check Your Business Credit

Just like you monitor your personal credit, you should check your business score. There are three main business credit bureaus, Dun & Bradstreet, Equifax and Experian. Make sure your information is correct. You’ll want to go over the accounts on each report. If you don’t have a report, you’ll want to establish credit for your business by getting a federal identification number and incorporating your business (or maybe an LLC.) Open business accounts at the bank. Register your business with Dun * Bradstreet.

Apply For Business Credit

Open a business credit card or revolving line of credit to establish credit for your business. You may also want to work with vendors who report to the credit bureaus. If you pay vendors on terms, ask if they report. If they don’t, ask if they will or find vendors who do.

Manage Credit Effectively

One big factor in business credit scores is paying your accounts early or on time. Watch how much credit your business has in relationship to your cash flow. Don’t overextend yourself because you don’t want to miss payments. Watch how you grow your business.

Continue Monitoring Your Business Credit

At least once a year, check your credit reports to ensure accuracy. If you find an error, file a dispute with the company, much like you would with your personal credit. Stay on top of your bills and cash flow. Know the terms of any loans or financing you take on.

Discuss your financing needs with the team at Whitefish Funding. We can help you build your credit for your business.