Building your business credit score takes time and patience (two things we all need more of, right?), but there are some really great practices that you can implement right now so that you can strategically position your business to access affordable capital.
Review Your Credit History: this is as simple as it gets, right? Before you take any action, you need to know and understand where you stand with your credit. Simply request your credit report from a business credit bureau and study it like a hawk. Why like a hawk? Because there are occasional errors in credit reports that can adversely affect your score. You want to make sure to catch those, so get your hawk vision going.
Two Business Credit Bureaus You Can Use
a. Duns & Bradstreet (D & B): apply for a D-U-N-S number and sign up for free alerts. D & B will also provide detailed explanations on your business credit in your report.
b. Equifax: for a mere $7.49 (less than lunch) you can request a copy of your Business Risk Indicator Report. For further security, you have the option of receiving monitoring services, starting at $5.99/month.
Put Your Credit to the Test: Open a line of credit for your business with a bank, credit card, or an online lender. Be sure to start with a small line and make all your payments on time. Also, avoid at all costs overawing on your credit lines and maxing your credit availability month over month.
Establish a Good Business Credit Record: Instead of trying to repair a long history of bad credit, it is way easier to start a business with a strong credit record. So what should you do? Start by getting a business credit card. A lot of business owners fund their business with personal credit cards (super common). If you’re doing this, be sure to create a plan to pay off those credit cards and start transitioning all lines of credit under your business.
Using these tips together is one of the fastest ways to establish a strong business credit score. Now you’re moving forward boss.