Credit for business is a main concern for the owners of small businesses everywhere. There are few things that are as critical to the success of a small business. Yet most business owners never invest any time towards the drafting and executing of a small business "credit" plan.
Credit for business begins with a plan. First, there are many items that lenders require your business to have taken care of in order to even be considered for a business loan. Such as your business must be listed with 411 directory assistance.
All public and banking records must match with the same exact business legal name. Your business must have an open credit file with all three business credit reporting agencies. And then your business needs to have three good business credit scores.
Almost all small businesses are started by the owner’s personal savings or leveraged assets. That capital normally quickly runs out and the owner is forced to seek financing to continue the growing the business. Unfortunately that is entirely backwards.
If the business owner had started the business with a plan to build the business credit and if the owner had used the personal savings and/or assets to secure the first loan business loan, then when the business needed to borrow to expand the ability to do so would have been available.