ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Build Business Credit

Updated on April 20, 2008

Business Credit

Business credit is very important for any and every business. It will help build your business's image, and it will help when you are working with other businesses.

You may need pamphlets and brochures created, so by going to an advertising or printing company, the higher your business credit, the higher credit they will allow you.

You want to conserve cash flow, keep track of expenses, and protect your assets. These are all very important and essential elements in keeping a successful business intact and running.

Finding a credit institution, such as a bank business credit card will help your establish you business credit.

Build Credit

In order to build good report and good credit, it may take some time, but to get started following the next few tips and suggestions and you should be on your way to building good business credit in no time.

Note: If you want to keep your personal credit and your business credit separate, you may have to structure the business as a Corporation or a Limited Liability Corporation, LLC, or consider purchasing an older corporation that has little to no business activity. Check with the business or government office in your area.

First, you're going to need to apply for an EIN number. In order to gain any business credit an employer identification number (EIN) is a must. All you have to do is go to the IRS website and apply for an EIN. Just following the directions on the website; they should be pretty simple.

Next, make sure to apply for any business license, permit, and registration, that you need in order to do business in your area; you don't want to get in trouble or find yourself in court because you didn't follow all the rules, just some of them.

And, then you want to open a business bank account, separate from your personal account. Make sure that the bank account is not under your name, but of the official business name.

Increase Business Credit

Now, once you have your EIN and your business license, you are ready to establish your business credit.

You may want to start simple by applying to places like Staples, Office Depot, and Office Max. You'll want to fax in a business phone bill or some other bill with your business name on it. It may be best to copy the bill on business letterhead.

Just like a personal credit card, make sure that you pay off the balance before your payment dead and before the grace period is up.

You may want to apply for other business credit cards, which is fine. Just remember not to apply to everywhere at once. Spread it out a little. You don't want your credit flagged.

When applying for business credit cards, the same basic rules as your personal credit card applies.

Establish a DUNS number

Next, you may want to establish a profile with Dun and Bradstreet in order to obtain a DUNS number. This is the largest tracker of business credit. It will be the best way for you to monitor your credit as you business grows.

The DUNS number is free of charge. You can apply at the DNB website, and you should have you 9- digit number within a month or two.

Note: The information that you give Dun and Bradstreet is permanent, so make is as accurate as possible.

Comments

    0 of 8192 characters used
    Post Comment

    • JYOTI KOTHARI profile image

      Jyoti Kothari 

      9 years ago from Jaipur

      Hi Whitney,

      I have also written a hub on the same topic and came across your hub while searching for the same.

      You have written very good.

      thumbs up!

      Thanks,

      Jyoti Kothari

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)