The following are the basic steps you need to take to establish your business credit profile and scores.
To build business credit,first you need to follow these simple steps.
1. Incorporate or Form an LLC
You need to have a separate entity to build business credit. Although you may still build business credit as a sole proprietor the purpose of incorporating your business is so you wont be personally liable for any debts occured by the business.
2. Obtain your Federal Employer Identification Number (FEIN)
You can get this from the IRS.
3. Open a Separate Business Bank Account
Business funds and personal funds must be separate.
4. Obtain a D-U-N-S Number
This is a 9-digit number issued by Dun & Bradstreet that most companies utilize to verify the credit history of businesses.
5. Compliance
Make sure you’ve obtained all necessary business licenses, permits, etc. that are required in your jurisdiction.
6. Apply to “New Business-friendly" Creditors
Apply to those companies that generally grant new businesses credit cards and lines of credit without requiring a personal guarantee. These companies will then update your credit profile with the various Business Credit agencies.
7. All finished
This is how you initially establish a business credit profile with the Business Credit Burueas, it will take time to effectively build a business credit profile, and that’s if you do the process correctly.
