Establishing business credit is an important step for any business owner or entrepreneur. Business credit can give you access to capital, help you manage cash flow, and improve your chances of getting approved for loans and lines of credit. Here are a few tips to help you get started.
-Get a D-U-N-S Number
The first step to building business credit is to get a D-U-N-S number from Dun & Bradstreet. This number is used by creditors to identify your business and track your creditworthiness. You can apply for a D-U-N-S number online, and it’s free to do so.
-Register with the Secretary of State
The next step is to register your business with the Secretary of State in the state where your business is located. This will help ensure that creditors can find information about your business if they need to.
-Open a Business Bank Account
Opening a business bank account is another important step in the process of building business credit. This will give creditors another way to track your payment history and see how well you manage your finances.
-Apply for Net 30 accounts
One of the best ways to build business credit is to apply for net 30 with suppliers. This means that you’ll pay for goods or services after you receive them, rather than up front. Paying on time will help improve your payment history, which is one of the most important factors in determining your creditworthiness.
These are just a few of the steps you can take to help build business credit for your business. By following these steps, you’ll be on your way to establish a good credit history, which will give you access to capital and make it easier to get approved for loans and lines of credit in the future.