Is building business credit a part of your business plan? Sitting in on a class that talked about building business credit was really helpful. There are lots of tips for helping to get credit for your business.
Business Credit and Personal Credit
One of the first items was keeping your business and personal dealings separate. Mixing business and personal transactions is a no no when it comes to getting business credit. You might have heard about the different business entities. Corporations and LLCs were the two that popped up in this presentation.
Incorporate or LLC
There are lots of books that talk about the differences between corporations and LLCs. You can find that information by checking here. Creating a new entity can mean paying fees. Just getting a new corp or llc means making a lot of decisions. Some of those decisions include deciding where to create the business.
Business Bank Accounts
The seminar provided some helpful tips when it comes to signing up for business bank accounts. The applications for business checking accounts might ask for certain information, but the seminar presenter talked about the importance of not supplying this critical piece of information.
Learn about the Business Credit Report
Most people know about their personal credit report, but they might not know that a business can have a credit report. There are credit reporting companies that keep track of this information. The seminar talked about trade lines and the number that you should have.
Building Business Credit
Why would a business owner want to build up business credit? You never know when opportunity can come knocking at your door. Getting business credit might allow your business to take advantage when the situation is present.
A business is going to need to buy things from time to time. Paying with credit might free up some resources. Businesses buy paper, ink, and all kinds of different services. Establishing business credit might be a good idea even if you don’t have real plans to use the money.