Note to Commecion: Thank you so much for calling in to my radio show today. Since we didn’t get to your question about how do get credit for your business even if your personal credit is bad, here are some tips. Understand that even if you have great personal credit, you still may not get business credit if you don’t have a solid business plan. But, if you have a good business plan, then you can start building your business’s credit immediately.
Your business begins to establish a credit history from the beginning. Your business’s creditworthiness will be partly evaluated using your business’s credit score. Business credit scores run from 0 (bad) to 100 (excellent) – a score of 75 is a very good score. Your score is influenced by when you pay your bills, your available business credit, the length of time you’ve had a credit footprint and the number of inquiries about your credit score.
Steps to build business credit.
You can build your business credit by taking these steps:
- Credit transactions are compiled by business credit bureaus and used to form a business credit report. Register your business with the business credit bureaus. Business credit bureaus include Dun & Bradstreet, Experian, Equifax and Business Credit USA.
- Get a dedicated phone line.
- Get a business license.
- Keep your financial statements and business plan up to date to provide upon request.
- Use your business information – and not your personal information – when applying for business credit.
- Pay your bills on time.
- Get credit lines, even if small, to build credit history.
- Report your own payment history to the business credit bureaus.
PS: Commecion, if this does not answer your question, then leave me a comment and I’ll see if I can answer it.
PPS: Let me know if I spelled your name wrong.:)