1. Determine whether you do or do not have a business credit
file. As soon as you start a business you should apply for a D-U-N-S number
which is a unique identification number for you businesses that will help in
starting the process of creating a business credit file.
2. Establish a business credit history. Small businesses use their personal credit
and finances to get their business going. Establish credit history by putting
expenses under the business name. Phone lines, bank account and any other bills
established by the business.
3. Pay bills on time and understand that other factors will
influence your credit rating. To improve your credit score and build a strong
positive business credit all bills must be paid on time. Don’t over extend your
business; your payment behavior is an important factor on credit. Keep in mind
that there are other factors that credit history, credit rating, industry,
revenue, and number of employees is also some factors that influence credit
rating.
4. Monitor your business credit file and keep it up to date.
Monitoring your business credit file will allow you to be aware of any changes
in your rating before it affects your relationships with customers, suppliers,
and financial institutions. Keep it current and accurate to reflect all changes
in location, employees, revenue, or any changes to the company.
5. Managing your small business credit will secure that you
can get financing when it is needed, you can get your supplies at affordable
terms, protect yourself from identity theft. 15-30% of commercial credit loss
is from fraudulent activity and it is important that your credit reflects
accurate information.
By understanding and managing your business credit you can
save yourself some money when working with customers for products needed to
keep your company working. It can also give you that freedom to go to the bank and
acquire fund if needed. These are great tips provided by SBA.
https://www.sba.gov/managing-business/running-business/managing-business-finances-accounting/managing-your-business-credit
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