How to Build a Business Credit Profile
An important goal of creating a business credit profile is to isolate its financial activity from your personal credit, so when applying for loans creditors will see that your company has established its own history of responsible debt use – an essential factor when considering whether lending your money.
Building business credit requires several steps, such as opening a bank account and asking vendors to report payments directly to credit bureaus. Opening, using and paying off a business credit card can also help increase its score – just make sure it fits with your company type by researching which cards will report payment history directly back.
No matter the size or scope of your business, establishing its credit profile can vary depending on a variety of factors – such as which vendors and suppliers report to commercial credit bureaus and which. It’s always a good idea to select accounts that do report; that includes choosing credit cards and loans that report at least to one of three major business credit bureaus as well as lenders that do the same.
Nav offers business credit cards that report to all three bureaus as well as an additional service called Nav Business Boost that enables you to add tradelines with a secured loan.
You can compare business credit services and more here.
