7 ways you can establish your business credit and best practices to keep you from falling into bad business credit.
HOW TO BUILD BUSINESS CREDIT
- Incorporate your business :
- Choose a business entity
- Research the incorporation process in your state for your entity
- File state paperwork
- File federal paperwork
2. Establish your business :
- Get an EIN
- Open a business bank account
- Get a dedicated business phone line and list it
3 . Gets a DUNS number :
- Register online at the Dun & Broadstreet website
4 . Review your business credit report :
- Download your credit report from Equifox , Experian , or Dun & Broadstreet
- Review report for errors
- Correct and dispute errors following the credit agency’s instructions
5. Open a line of credit to your vendors :
- Identify vendors you work with regularly
- Ask if they report you payments to credit agencies
- Request a line of credit with the vendor
6 . Open a business credit card or line of credit :
- Make payments on time or early
- Open one to two credit cards at a time
- Use less than 10% of your available credit
- Review your credit report every year