Entrepreneur’s Journal: Strategies for establishing business credit
Posted by: in Small BusinessFiled under: Staples Inc (SPLS), United Parcel’B’ (UPS), Small business
While the credit crunch is making it difficult for businesses to get credit, there might be other reasons you’ve had trouble getting the line of credit you need. For one thing, you may not be taking steps to build a credit history for your business.
By establishing business credit, you might be able to get more massive loan amounts and superior rates. What’s more, it could be easier to find good suppliers and vendors - as well as to snag customers.
So how do you establish business credit:? Well, here are some steps:
Create a credit profile: Perhaps the top credit agency for small businesses is Dun & Bradstreet (NYSE: DNB). Basically, you complete a credit profile with them through service called the CreditBuilder; you then get a DUNS number, which is what third-parties will request when they do a credit check. All in all, the process is pretty simple.
Keep in mind that it’s important to periodically update the file. An incomplete file is often a red flag.
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