When it comes to building corporate credit, the process can be fast but also difficult. There are several steps to take in order to increase your business’s creditworthiness and build a strong financial profile. One should understand that if you’re wondering how to build corporate credit fast, it’s really not a process that you want to rush too much. You want to build corporate credit properly and with patience, so you don’t want to take shortcuts or rush the corporate credit-building process. With that said, there are a few tips that might save some time when building corporate credit. Here are a few quick pointers on how to build corporate credit fast:
1. Establish a Business Entity – The first step is to establish a business entity such as an LLC or C-corp. This will help protect personal assets and give creditors the assurance that their transactions are made with a legitimate business.
2. Obtain Vendor Accounts – Vendor accounts are lines of credit offered by suppliers and vendors. They provide short-term financing to help cover the costs of inventory, supplies and other business needs.
3. Open Business Banking Accounts – It’s very important to open specifically a BUSINESS banking account in the company’s name and using the company’s tax id number (when possible). Use your business checking or business savings accounts regularly for transactions, try to keep your balance as high as possible, and try not to ever get any NSF fees. This will help build a positive track record of financial responsibility that may appeal to business lenders down the road.
4. Apply for Business Credit Cards – Business credit cards are one step in the corporate credit building process and if done correctly, may help you build corporate credit. The corporate credit card you use, however, must be in the company’s name and tax ID number (if possible) and it also needs to be the type of corporate credit card that reports payments to business credit bureaus (if applicable) in order to maximize the corporate c credit building benefits of using a corporate credit card.
These are just a few tips to help you build corporate credit and are certainly NOT all there is to the process. If you’re looking to learn more about building corporate credit, visit our corporate credit services comparison page and build corporate credit today!