Business
Everyone is familiar with personal credit cards and credit scores these days, but have you heard of a business credit card? All major banks and card issuers issue business credit cards, just as they do personal credit cards for personal use. These cards are only available to registered corporations and are only for business expenses. However, in order to obtain these cards and other types of business loans, a business credit score is required. If you want to build your business credit, you might be looking for ways to do so as well.
Tips to build business credit score:
- Create a business entity, such as a corporation or a limited liability company (LLC), and obtain a separate Employer Identification Number (EIN) from the IRS.
- Create a business bank account and credit card to be used solely for business expenses.
- Pay bills and invoices on time to demonstrate a track record of punctuality.
- Use credit wisely by not exceeding credit limits and keeping a low credit utilisation rate.
- To demonstrate your creditworthiness, apply for a small business loan or line of credit.
- To establish your business credit profile, obtain a D-U-N-S number, which is a unique nine-digit identification number assigned to your business by Dun & Bradstreet (D&B).
- Request trade credit from your suppliers, which will be reported to business credit bureaus.
- Keep the credit bureaus informed of any changes in your company's information, such as address or ownership.
- Monitor your credit reports on a regular basis to ensure accuracy and to correct any errors.
- To avoid a negative impact on your personal credit score, keep your personal credit separate from your business credit.
For more information refer to: https://cardinsider.com/blog/tips-to-build-your-business-credit-score/