- April 1, 2022
- Posted by: Curated Contributors
- Categories: Blog, Business Credit
Top Business Credit Mistakes You Can Avoid
Opening any business means taking risks and making and learning from your mistakes. But, it also means that you have an opportunity to avoid common business credit mistakes that can delay or even ruin your business credit building efforts. Avoid the top business credit mistakes if you want to build business credit fast and efficiently.
Top Business Credit Mistakes:
Not opening a business banking account early enough or before applying for business financing. Many banks look at the day that you opened your business banking account as the day that your business was formed, instead of your incorporation date. If you want to build business credit, you’ll want to open a business checking account or business savings account right after you incorporate or form a LLC. Ideally, you would have a business banking account before applying for business financing. Also, don’t take the first business loan that is offered to you until you compare business loans to make sure you get the best business loan or business financing method that you are qualified for. You can compare business financing offers on Lendzz.
Not Incorporating or Forming a LLC. Many business owners just use the sole proprietor status to run their business, but they may be missing out when it comes to protection and building business credit. Typically, if your business wants to build business credit that’s separate from your personal credit, you’ll want to either incorporate by forming a s-corp, c-corp, or LLC. These forms of business entities are typically better when it comes to building business credit and protecting owners from liability. *You will need to talk to a business attorney to decide which business entity is right for you in regards to liability protection, taxes, benefits, and building business credit.
Not Establishing NET 30 Vendors. If you want to build business credit, you will want to establish a few relationships with a few business vendors who provide NET 30 terms and report your on-time payments to the business credit bureaus. Some business credit courses encourage you to build 3-5 vendor relationships, while other business courses suggest having 7-10 vendors who give you NET 30 terms and report to the business credit bureaus.
Incomplete Business Compliance Profile. If you want to build business credit, you need to meet the business lender compliance minimums and that means having a business credit profile that includes a professional and consistent business address, business phone number, business email, business fax, business website, business TAX ID Number or FEIN number.
Not Paying Bills On-Time. Having an excellent payment record on your your business debts, business bills, business utilities, business vendor accounts, business credit cards, and business loans is very important. You must make on-time or ahead-of-time payments on your business debts and business bills each and every month if you want to build business credit.
Not Following The Right Steps to Build Business Credit. If you want to build business credit fast and you want to learn how to build business credit, you may want to consider either investing in a business credit course or using a business credit service. You can compare business credit services and view a business credit course offer by visiting the business credit services comparison page at Lendzz.com and seeing what the various business credit companies have to offer. If you want to build business credit and compare business credit services, check out the business credit services comparison table and start building business credit today.
Are you looking for business financing, a personal loan, or a way to build your credit? Visit Lendzz for options that can help starting today.