How to Build Business Credit Quickly

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The following steps to building business credit are not necessarily in exact order, but they should give you a general guideline on how to build business credit quickly by using the 9 steps below. If you’re looking to build business credit quickly and would like assistance in building business credit, check out our business credit services comparison page and compare business credit services today! With the 9 steps to building business credit below, you can get a great start on your business credit-building aspirations.

How to Build Business Credit Quickly

Building business credit is crucial for any business owner who wants to secure financing and grow their company. Luckily, it’s not difficult to do if you follow 9 simple steps. Building business credit is an integral part of building a great business. By following these 9 steps, you might just establish business credit and build a strong business payment history. Doing this could allow you to get the financing your business needs to grow successfully.

Learn how to build business credit quickly by following these simple steps and applying some basic principles.

1. Choose the Correct Business Structure

One major step in building business credit is to choose the correct business structure. This means choosing a business entity that is best suited to your needs. Some common business structures include limited liability partnerships (LLPs), limited liability companies (LLCs), and corporations such as S-corps and C-Corps. Each type of business has its own advantages and disadvantages, so you may want to speak to a business attorney or business tax attorney before deciding your corporate structure. Make sure you follow the filing and reporting rules and regulations of your state, which means you may want to consider using a business incorporation service or even a registered agent service to help you meet your initial and annual filing requirements for your specific U.S. state. 

2. Get a Federal EIN Number or Business Tax ID Number

Another step in building business credit is to get a Federal EIN Number or Business Tax ID Number. This number is used to identify your business for tax purposes and is required when applying for loans or lines of credit. You can apply for a tax id or EIN online through the IRS website. By getting a Federal EIN Number or Business Tax ID Number, you can help put your company in a better position for financing and you can use this when filing taxes. *Make sure to consult with an attorney and if you open an EIN number, make sure you close your business account with the IRS and state correctly when and if you ever close down your business because an EIN number stays open for good, just like a social security number. * Make sure to consult with a business and/or business tax attorney before deciding to open or close an IRS business account or and before you open an EIN number.

3. Open a Business Banking Account

Another step in building business credit is to open a business banking account. Your business banking account can be used to manage your business expenses and deposits. Opening and owning a solid business bank account is important for building a strong credit history because lenders look at the day you opened your business banking account as the day you became a business. Business lenders may be more likely to extend financing if you have a business checking or savings account with no bounced checks, NSF fees and if you keep over a $10,000 average balance and are in good standing.

4. Find Trade Vendors to Extend Business Credit on Net 30 Terms

Yet another step in building business credit is to find trade vendors that will extend business credit on Net 30 terms. This may allow you to purchase everyday business goods and services from your Net 30 vendors and pay the entire balance within 30 days. If you pay your business bills on time, you can begin to build a good payment history and business credit, which may help you get business financing

5. Consider Using Business Credit Services

There are a number of business credit services available that can help you build business credit quickly. These services can help you obtain the financing you need to grow your business.

6. Establish Business Credit

An important step to building business credit is establishing it. One way this can be done (partially) is by applying for a business credit card or taking out a small business loan.

7. Build a Business Payment History

Once you have established business credit, you need to start building a payment history. This means making all of your payments on time and in full.

8. Use Business Credit Reporting Services

There are many credit reporting services available that can help you track your business credit score. By using these services, you can stay on top of your credit and make sure it is growing as quickly as possible.

9. Monitor Your Business Credit Score

Monitoring your credit score is important to ensure that you are getting the most favorable terms possible when borrowing money or applying for loans. You can get free credit scores from a number of sources, including the three major credit bureaus.

By following these simple steps, you can build business credit quickly and more easily than you may have thought possible. By establishing business credit and maintaining a good payment history, you will be on your way to securing the financing you need to grow your company.

Scroll below to compare business credit services or visit our business credit services comparison page.

Company

Business Credit Offer

Learn More

 

 DNB.com

 Dun & Bradstreet

 Business CreditBuilder Plus

 Potential savings benefits

 Business credit building

 

 

 

 DNB.com

 Dun & Bradstreet

 DUNSfile Express

 Get a DUNS number fast!

 Expidited DUNS # filing

 

 

 

 NAV.com

 NAV business credit 

 Business credit software & services

 

 

 NAV.com

 NAV business credit 

Business & personal credit reports

 

 

 NAV.com

 NAV business credit 

NAV product comparison page

 

 

 Excilio Business Credit

 DIY business credit course

 Business credit + entity creation course

 

Additional Business Services

Find business products and business services that compliment business credit services, such as business banking, business insurance & more!

 

 AxosBank.com

 Axos Bank business banking

 Axos basic business checking account

 

 

 AxosBank.com

 Axos Bank business banking

 Axos business savings account

 

 

 Bank Novo Business Banking

 Business banking accounts

 Novo business checking account

 

 

 CoverWallet Business Insurance

 Business insurance aggregator

 Multiple business insurance quotes at once