The Secrets to Building Business Credit

Obtaining credit for a business with no personal credit check and no personal guaranty is very appealing for any business owner.  One might say this is the holy grail of owning a business, being able to obtain massive amount of funding using the business itself as collateral. 

There are many steps to building an exceptional business credit profile. Each of these steps is essential in obtaining business credit with no personal guaranty. Here are some of the steps we help our clients take when building business credit... 

1. Make sure they start by incorporating their business and make sure they obtain a Federal Tax ID#. 

2. Insure they setup a business bank account and that the business name on their corporation papers is the same as on their business bank account. 

3. Insure they have a business land-line number that is listed with 411. 

4. Insure they have the proper businesses licenses for their business that they need.  Have them set up a complete credit profile with Dun and Bradstreet 

6. Make sure they pay business bills that report to the business credit reporting agencies ahead of the due date. The earlier they are paid, the higher their business credit scores will be. 

7. Clients need to build a solid payment history with many accounts being paid as-agreed or early each month. Building excellent business scores means they have many accounts reporting as paid-as-agreed. Then we have them keep using their credit to build a solid profile. 

8. Insure they monitor their business credit file. We have them keep an eye on their scores and the accounts that are reporting. 

9. We have them establish a minimum 'low 5' bank rating by establishing and using their bank credit. 

10. Have clients open a small business credit line that reports on their business credit profile. Credit lines have high limits and reflect positively on their business reports. 

11. Insure they establish a diversity of credit using multiple store and Visa, MasterCard, and Amex accounts. 

12. Insure they establish a well written business plan as many lenders will want to see this to approve them for funding.   (Business plans are required when our clients begin to seek funding for projects in excess of $200,000 or more).

When our clients work with us we do all these steps for them and more. This way our clients get funding and business credit and grow their business.