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AND received FOUR free Business eBooks worth $39.95!
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Funding is often the most difficult part of setting up a new business. Inventory, machinery, office space, employee salaries – these all require a lot of money. Yet getting business loans is extremely difficult without having a good business credit report. So here’s how to jump-start your business’ credit profile in order to qualify for financing someday.

Separate Your Business and Personal Credit

Business loans are made to businesses, not individuals. The first thing to do is set up your business as its own legal entity, either a corporation or an LLC. This allows your business to being building credit history. Your business will also be assigned a tax ID number – basically a corporate social security number – that will allow you to open business bank accounts. This will also allow you to obtain a business credit file number from credit bureaus like Dun & Bradstreet, which keep records of your credit actions. Talk to your accountant or financial advisor about whether your business should be a corporation or an LLC, but get the process started immediately.

Open a Business Bank and Credit Card Account

Once your business is legal and official, it’s time to start building credit. Open a bank account in the name of your business and also get a credit card account for your company. Lenders often like to look at the past two years of your bank statements, so starting this at the outset is also essential. With the credit card, its best to keep a low balance and pay it off in full each month.

Have Your Trade Partners Report Your Payments

Ask each of your trade vendors to report your payment history to the major credit agencies. Not all business partners do this automatically, so it’s important to ask them personally to report it. Each record of on-time payments will boost your credit profile and score.


Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources