People are always asking me for tips on how to build business credit. The joy of building credit for your business is there is no exact steps that need to be followed. Don’t get it twisted, though, because obtaining proper credit does require a process. Some steps need to be completed as soon as possible as others can be done at any time. You should be building credit at all times because you never know when you are going to need it.
Let’s take a look at how to build business credit now and later!
Create A Plan
The first thing I tell people when they ask me how to build credit is to make a marketing plan for credit for your business. That plan should be reviewed and revised on a monthly basis.
If monthly time frames do not work for you, try having a weekly plan instead. A good goal per week is to find one avenue in business that will build you credit. How to build business credit starts with an organized plan and finishes with you completing the plan.
Find Lines Of Credit That Work For You
You may feel that you are asking how to build business credit because of all the stories you heard. You are not sure what is right, wrong, legit, etc. My best piece of advice is to consider what you want you business to be about and go from there.
Let’s say you have a bad credit score for your business, you will probably want to look for credit specifically for people with poor credit. Obviously, regular credit cards will not work if lenders will not grant you one in fear you are not going to pay them back.
There are many types of credit lines that can work for your specific situation; take advantage of them. Do not be afraid to ask your lender for help in choosing the right type of credit for your business. It really will help you in the future.
How To Build Business Credit After Your Business Is Established
I have talked about how to build business credit from the beginning of your business. The most important thing is to register your business, and create a business address and phone number. However, you may be wondering how to build business credit after your business is established.
The easy answer, again, is talk to a lender. A lender will be able to tell you your business score, credit cards that are right for your business, loans that are right for your business, refer you to credible vendors, etc. They work with individualizing credit for business owners everyday. You can trust their suggestions.
The basic thing I tell business owners on how to build business credit is to never stop building it! You may read in a business magazine a year from now about a new topic in credit for a business. Give it a try! You may earn a little bit of credit from it, but isn’t it worth it?