Peace and Blessings! This is your Talking Dollars & Sense article for the month. In honor of August being Black Business Month, I’ve decided to focus on a topic that all businesses need to focus on: Building Business Credit. All successful businesses requires money aka CAPITAL. Most new entrepreneurs do not know how or where to acquire this capital. This is where having good BUSINESS CREDIT becomes paramount. But how do you establish Business Credit? Below are the 8-steps that will allow you to build Business Credit and gain access to the capital you’ll need to run your enterprise.
Eight Steps: How to Establish Business Credit
1. Put your business on the map
2. Maintain good credit with suppliers and vendors
3. Obtain an employer identification number (EIN)
4. Pay on time all the time
5. Open a business credit card
6. Get incorporated
7. Separate business and personal expenses
8. Monitor your credit
Establishing business credit isn’t complicated, but it does take some planning and forethought. The sooner you start, the sooner your credit will start to build.
What is Business Credit?
Business credit is the ability of a business to qualify for financing. Businesses have credit reports and scores just like people do. Business credit bureaus Dun & Bradstreet, Experian, and Equifax all keep a record of debt payments and other credit information on businesses.
Your business credit report may be used by lenders, creditors, suppliers, insurance companies and other organizations evaluating a credit or insurance application or business deal.
These tips on how to establish business credit and then build a business credit profile can help you bring your plans and aspirations to fruition.
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Thank you for reading Kinji Ridley’s article on scoopnewsusa.com. For more on “Entrepreneurship 101: Building Business Credit”, please subscribe to SCOOP USA Media. Print subscriptions are $75 and online subscriptions (Print, Digital, and VIZION) are $90. (52 weeks / 1 year).
