Beginner’s Guide: Building Your Small Business Credit

As a small business owner, it’s essential to prioritize building your business credit. Not only does a strong business credit profile help you secure financing and attract investors, but it can also open up opportunities for growth and expansion. Follow this step-by-step guide to start building your business credit today.

Month 1: Assess Your Business Credit Report

• Check if your business is listed with major credit bureaus like Dun & Bradstreet, Experian, and Equifax.
• If you can’t find a credit report, focus on establishing accounts that are reported to these bureaus.

Month 2: Review Your Credit Scores

• Confirm the existence of a business credit report with the major credit agencies.
• Note that each bureau generates its own credit score, making it crucial to monitor all three.

Month 3: Evaluate Vendor Reporting

• Determine if your vendors report payments to credit bureaus.
• Consider switching to vendors that report payments to help build your credit history.

Month 4: Correct Errors on Your Report

• Regularly monitor your business credit report for accuracy.
• Report any discrepancies to the respective credit bureaus to ensure an up-to-date profile.

Month 5: Apply for a Business Credit Card

• Obtain a separate business credit card to track expenses and build credit.
• Choose a card with features like rewards, low interest rates, or employee card controls that align with your needs.

Month 6: Pay Balances in Full

• Aim to pay off your business credit card balances in full each month.
• Minimize interest costs and improve your credit by timely and full payments.

Next Steps to Build Business Credit

After diligently following these steps, you’ll be well-equipped to qualify for financing and explore growth opportunities. Whether seeking a small business loan or attracting clients, a strong business credit profile will benefit your business in various ways. Keep monitoring your credit scores to ensure continual growth and success.

RELATED: 6 Easy Things You Can Do To Boost Your Business Credit Score

By focusing on building your business credit, you’re setting your small business up for long-term success and growth. Invest the time and effort now to reap the rewards in the future.