Post a new topic
    6 Replies Latest reply on Dec 9, 2012 3:36 PM by aimjenn

    Building Business Credit

    alplouis Wayfarer

      Anyone know what steps should be taken for building small business credit?

        • Re: Building Business Credit
          Guide

          Good question alpouis. Setting up a business can be overwhelming at times. I found a link for you that maybe helpful. How to Build Business Credit in 7 Steps   Let us know if we can give you more information. We have many great members aboard who can help. Good luck!


          Melinda

          • Re: Building Business Credit
            lou1s Wayfarer

            I have created credit profiles for several businesses with the steps below.

             

            1. Every business must have a tax ID number, just like each individual has a social security number.
            2. 2The Tax ID number (or EIN) is a nine-digit number assigned by the IRS to business entities operating in the U.S. You’ll use this number to open your business bank account and build your business credit profile. You can apply for your business EIN online through the IRS website.
            3. 3Every Business should also have a Directory listed phone number.
            4. 4To do this for free you can use a virtual number that forwards to your existing personal phone or cell. to find the most popular free service just do a search for the word voice.
            5. 5Once you have your new phone number you can list in the the information directory for free by searching online for the term listyourself.
            6. 6Your business needs to have its own bank account, if in the future you need to apply for a loan, your bank account will need to be at least two years old so apply for a business bank account as early as possible.
            7. 7Get Listed with the Business Credit Bureaus
            8. 8Dun & Bradstreet is one of the main business credit bureaus and runs its own business credit score. D&B gives businesses a separate credit file number (known as a D&B or DUNS number) that rates your credit profile. Go to their website to begin the process by applying for a free DUNS number once you've established your business entity and have your EIN. The number is how lenders will determine your business credit worthiness.
            9. 9Now as you are almost complete in establishing a verifiable, credit worthy business you will start applying for "starter accounts" these are supply vendors that offer credit to new businesses and report payment history to credit bureaus like D&B
            10. TIPS
            • Your first starter account should be with a web hosting company for 2 reasons.
            • 1. It will seem more professional for you to have your own email and website, me[at]my biz.com, for this reason you can move this task to the top.
            • 2. Also, You want to find a web host that will offer you net 60 terms and report your payments to D&B. I recommend doing a search for Venturelogix business hosting as i know they report to D&B.
            • Other good start up credit sources are listed below,you'll want at least three accounts.
            • Good Luck!

            Citations

             

             

            • Re: Building Business Credit
              aimjenn Wayfarer

              When you're building business credit, pay attention to your Paydex score, and shoot for at least a score of 80. This may help:

               

              How to Increase Your Paydex Score

              • Re: Building Business Credit
                alicenikolic Scout

                In order to start building your business credit, here are some of the points which might be useful to you:-

                1.You must set up a business entity

                2. once you have a business entity, ensure that you have a tax id number

                3. Open a bank account

                4. Important to list your business with business credited Bureaus

                5. Try to establish of the your business history.