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Establishing and building a strong business credit history can open the doors for better funding and more favorable terms with vendors and suppliers. Learn the top 8 steps to building business credit for startups or existing companies. Knowing how to build business credit will begin to open your business up to growing.
Is it hard to obtain business credit?
When starting a business, it can be hard to obtain business credit with no personal credit history. Taking the first few steps to establish your business as a credible entity is important for securing critical resources. You may not have checks coming in yet, but you need to build credit so you can get the things you need to keep your company afloat.
Building business credit is not easy.
What is establishing business credit important?
Business credit is an important part of every business. A lack of good credit can prevent a company from securing loans, leasing property, and purchasing equipment. To establish business credit, some basic steps must be taken to obtain the right kind of accounts. Primarily this means obtaining at least one credit card that charges little or no annual fee.
Business Credit is essential
Establishing a business credit score is an essential part of starting a successful company. Business credit can be established by opening a line of credit at your bank, establishing trade lines with vendors and suppliers, and getting involved in the community.
Benefits of establishing business credit
For many small businesses, one of the most important and difficult tasks they must undertake is to establish good business credit. Establishing good business credit not only benefits the company itself but also strengthens its position in the marketplace.
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