How to Build Business Credit

By adding right suppliers and vendors you can build your credit history and establish good business credit score Good business credit score is Important!. Dun & Bradstreet uses a system called PAYDEX to calculate your business credit score. They gather information from suppliers and vendors each 12 months (rolling period). For this reason, it’s very important to always make prompt payments to all of your suppliers and vendors.

Suppliers and vendors will also check your credit history on when deciding to do any business with you. A low score means your business is at high risk of defaulting or missing payments on outstanding credit.

As you build your credit history and make on time payments, your credit score should improve. Having a good business credit score will help you get lower rates and allow you to do more business with suppliers and vendors, as they won’t see you as a credit risk.

Any accounts that might be under your personal name and are actually being used for business should go under your business name. This not only helps with validity of your business, improvement in accounting but also can help build your business credit. The more successful business transactions you have across different accounts, the better your credit history and score will be.

Here’s how to get starting building your business credit through trade accounts:

Step 1 – Create a business account with one or more of the following:

Quill / Uline / Global Industrial / Grainger / S. Walter

Step 2 – Continue opening trade accounts with some of these vendors:

FedEx / Home Depot / Dell Business Credit / Office Depot / Lowes / Staples / UPS / Conoco / Shell / Chevron

Step3- Open a business credit card account.

Be sure any account you open actually does report to Dun & Bradstreet and Experian for business credit purposes. You can always ask before opening the account. Before applying to any business cards make sure your personal credit qualifies. You can check it by clicking on “Learn More” for each card under “Recommended Requirements to Know” on our Business Credit Cards section.

Step3 (Option 2)- Open a secure business credit card account.

If you don’t qualify for an unsecured business credit card because bad or limited personal credit history you can get a secured business credit card with a revolving line offered to your business by a bank. A secure business credit card can greatly help you to jumpstart your business credit.

We Recommend  Secured Business Credit Card from Wells Fargo.

Secured Business Credit Card

Other Business Services - You can also open accounts with any other business services and request them to report it to DUNS to be included on your business credit report.

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