With the COVID-19 pandemic continuing to wreak havoc on the economy, now is the time to focus on building your business credit. Whether you’re a startup or an established business, having strong business credit can give you the financial flexibility to weather any storm.
Building business credit is not as difficult as it may seem, but it does require some planning and effort. You can also check https://www.thebusinesscowboy.com/ for more additional information.
Here are a few tips and tricks to get you started:
1. Use a Business Credit Card
One of the easiest ways to start building business credit is by using a business credit card. When you use a business credit card and make your payments on time, you’ll begin to build a positive payment history, which will be reflected in your business credit score. Just be sure to keep your balances low and make your payments on time; otherwise, you could end up doing more harm than good.
2. Get a Dunn & Bradstreet D-U-N-S Number
In order to build business credit, you’ll need to get a Dunn & Bradstreet D-U-N-S number. This nine-digit identification number is used by businesses worldwide and is required by many vendors and lenders. You can get your D-U-N-S number for free by visiting their website.
3. Establish Trade Lines
Another way to build strong business credit is by establishing trade lines with suppliers. Trade lines are basically lines of credits that businesses can use to purchase goods and services from suppliers. By paying your invoices on time and in full, you’ll start to build a positive payment history with your suppliers, which will be reflected in your business credit score.
4. Monitor Your Business Credit Report
Once you’ve taken steps to establish and build your business credit, it’s important to monitor your progress regularly. You can request a free copy of your business credit report from any of the major business credit reporting agencies (Equifax, Experian, or Dun & Bradstreet). Reviewing your report regularly will help you identify any inaccuracies or red flags that may be negatively affecting your score.
5. Use a Business Credit Builder Loan
Another great way to build business credit is by taking out a business credit builder loan. These loans are specifically designed to help businesses build their credit, and they can be a great option if you have trouble qualifying for traditional financing. Just be sure to make your payments on time and in full, as missed or late payments could damage your credit score.
6. Join a Business Credit Network
There are several business credit networks that can help you connect with lenders, vendors, and other businesses that report to major business credit reporting agencies. Joining one of these networks can help you expedite the process of building strong business credit.
Building business credit is a critical part of running a successful business. By taking steps to establish and build your credit, you can create financial flexibility and weather any storm. Follow the tips and tricks above to get started on the right foot. Monitoring your business credit report regularly is the best way to ensure accuracy and avoid any potential red flags. Joining a business credit network can also help you expedite the process.