Credit is the cornerstone of any business. It is the lifeblood that sustains it. Business credit is a broad term that refers to the ability of a business to borrow money. It is important for any small or medium-sized enterprise to establish business credit because it enables them to access funding sources that would not be available without it.
A company’s credit rating can be tarnished by a number of factors, including late payments, defaults, bankruptcy and more.
The importance of establishing a good credit rating cannot be emphasized enough. It will help your business grow in leaps and bounds by opening doors to better suppliers and customers. Also, establishing a strong business credit is important for any company. It provides an opportunity to grow and expand the business. It also helps in getting loans and other financial assistance.
So here are some steps to establish your business credit
- Set up a legal structure like LLC
- Get your EIN number
- Create your D&B account
- Get a business phone number specifically the 1-800 number
- Establish accounts with Amazon, Ups, and other vendors
- Subscribe to credit score checkers like Nav
By doing this step, you’ll have a more structured way of getting business credit.