The following are the basic steps you need to take to establish your business credit profile and scores.
To build business credit,first you need to follow these simple steps.
1. Incorporate or Form an LLC
You need to have a separate entity to build business credit. Although you may still build business credit as a sole proprietor the purpose of incorporating your business is so you wont be personally liable for any debts occured by the business. Our Business Credit Coaches will file for Incorporation for you if you use our agent services. The incorporation fees are included in the pricing.
2. Obtain your Federal Employer Identification Number (FEIN)
You can get this from the IRS. Click here. Our Business Credit Coaches will also prepare this form for you if you use our agent services.
3. Open a Separate Business Bank Account
Business funds and personal funds must be separate.
4. Obtain a D-U-N-S Number
This is a 9-digit number issued by Dun & Bradstreet that most companies utilize to verify the credit history of businesses.They also have a free option to request a Duns number but it takes up to 30 days. Our Business Credit Coaches can attain your D-U-N-S number in 1 day if you are using our agent services.
5. Compliance
Make sure you’ve obtained all necessary business licenses, permits, etc. that are required in your jurisdiction.
6. Apply to “New Business-friendly” Creditors
Apply to those companies that generally grant new businesses credit cards and lines of credit without requiring a personal guarantee. These companies will then update your credit profile with the various Business Credit agencies.
We take the guesswork out of which creditors to apply for. Our Business Credit Coaches will establish credit accounts on your behalf if you are using our agent services
7. All finished
This is how you initially establish a business credit profile with the Business Credit Burueas.While the steps above to building business credit may be helpful, it will take time to effectively build a business credit profile, and that’s if you do the process correctly.
