Get Business Credit and Financing to Grow Your Business

Credit Building Tool: A go to business building service. This tool offers professional help with all of the services mentioned in this article! They are your one stop shop for a successful business venture. 

Choose the Right Business Structure

If you currently operate as a sole proprietorship it is imperative to understand that there is absolutely no legal separation between your personal financing and your business. When registering your business as an LLC, LLP, or Corporation it becomes legally recognized as a separate entity from yourself. It has the ability to establish credit, enter deals, sign contracts, and much more.

Apply for an EIN and Open a Business Account

An EIN functions as a social security number for your corporate entity. It is a 9 digit number that gets assigned to your company allowing you to legally conduct business as your corporate entity. You can use your EIN to file tax returns, open business accounts, apply for partnerships, licenses, and permits. Click here for a free EIN registration tool. 

Establish Credit with Vendors and Suppliers Who Report

As you buy inventory, services, marketing materials, or purchase other business related expenses on credit, those purchases and payments get reported to business credit and reporting agencies. One way to fully take advantage of this is to apply for net terms with these agencies, allowing you defer your payments on 30 or 60 day payment periods. This allows you to build credit, track finances in a timely manner, and maximize your cash on hand. 

Monitor Your Business Credit Reports

There are 3 major credit reporting agencies. They are Equifax, Experian, and TransUnion. They collect credit related data from various sources and give independent businesses credit reports. If they have incorrect information about your business getting it changed is as simple as contacting the agency in question and requesting an update.