NEED HELP BUILDING BUSINESS CREDIT?
Business owners are aware that it is important for them to keep their business finances and personal finances separate, and this means that they must know how to build corporate credit if they want their business to succeed. Here are some steps to follow in order to reach that goal: Begin by opening a separate business account, incorporating your business as a limited liability company (LLC), and obtaining a business
identification number. Use the account for depositing your company’s income and receipts, and issue all checks to your employees and suppliers from that source. Ask you suppliers to extend small amounts of credit to your business, repay them in a timely manner, and have them report this information to the three major credit bureaus to show that you know how to build corporate credit. What you should know: As a rule, it takes a minimum of four years for a business to establish its credit history, but some credit-builder organizations that know how to build corporate credit and can help you accomplish this in 90 days. This entails following a structured credit-builder program that they will explain to you when you consult with them if you decide to do this. To obtain a small business loan and show that you know how to build corporate credit, you must create a detailed business plan and sound repayment strategy to convince financial institutions that they should invest in your company. You can also pledge the company’s assets— including machinery or real estate—as collateral for raising funds. (Note that while business owners are looking for loans and know how to build corporate credit, lenders are focusing on the safety of their investment.) In time, if you establish a satisfactory commercial credit profile and continue to show that you know how to build corporate credit, you will be in a position to borrow larger amounts as your business grows and the need for sufficient cash flow increases. In addition, if your company is in the start-up phase, you will want to plan carefully to establish a sound corporate credit history, which will enable you negotiate more favorable borrowing terms when your business is in need of funds.
http://midwestcorporatecredit.com/building-business-credit/