How do I Start Building Business Credit for My Business
Are you tired of applying for credit for your business and you have to use your personal credit to decide if you are approved? Well protect your personal assets and separate your personal credit from your business just by structuring your business as a corporation. By incorporating your business, you can receive business trade lines of credit for your business without using your personal credit to determine your approval. You will be approved by giving your business information only. Incorporating is the best way to start building your business credit. If you donít incorporate your business, you can still build a business credit profile but you will be responsible for all the debts of the business. If you operate your business as a sole proprietor or partnership, when you apply for business your personal information will be used to determine whether you receive the credit or not. So we recommend that you build your business credit as a corporation or limited liability company.
What Are The Advantages of Building Business Credit Profile?
When you build credit for your business, you donít have to use your personal credit as a guarantee to obtain money for your business. You can build business credit for your business regardless of your personal credit history. Having business credit will allow you to have capital for your business, protect and separate your personal assets from your business, allow you to purchase salon equipment, computers and vehicle without checking your personal credit. Decisions for approval
Just like personal credit, when you start building your business credit, your business creditors will report your payment history to business credit reporting bureaus. The top credit bureau for business is Dunn and Bradstreet also known as D&B. Other business credit bureaus are Experian Business, Equifax Business and Business Credit USA to name a few. So once you build your business credit, it is important to pay on time to receive a good score, because just like personal credit you will obtain credit based on your score once your profile is built.