Guide on Establishing Your Business Credit

Why should you start establishing your business credit now? Establishing your credit history from the time you've launched your business is definitely an advantage. The older your business credit is, the more confident lenders would be on your ability to keep up with your payment obligations. Why is this important?

Sooner or later, as your business grows and expands, you'll need to apply for new loans and other business financing options. As we've said, the more impressive your business credit history is, the better your chances are of getting the best of what lenders has to offer.

In addition, having a corporate credit protects your personal credit history from risks. If you fail to meet your deadline of payment on your business credit card, only your business credit will be affected and your personal credit history won't have to suffer. Let's discuss the requirements and information you'll need to prepare before you can start building your business credit.

Legal entity. First of all, you need to clearly define the type of your business. To qualify for corporate credit, your business should be a corporation or an LLC (Limited Liability Corporation).

Physical Address. A legitimate business must have a physical address and telephone number. These two important contact details confirm that your business is really existent and not just a name.

Investor. Who is funding your business? Whether you have sought help or financial assistance from a lending company or a private investor, you must provide this information when applying for business credit.