Why does your venture need business credit? In order to understand this, you need to know the definition of this kind of credit. It basically stands for the credit worthiness of your company as a separate entity. Your personal identity and scores are not up for scrutiny and questioning here. It is of utmost importance for you to build business credit as soon as possible and to ensure that you have a worthy business credit profile. Whether it is a new business or an old one is of no concern, if you have not yet, now is a good time to work on the credit aspect of your business.
Business Credit Bureaus
Personal credit bureaus are familiar names to us. There are specific credit bureaus that deal only with the business aspect of credit scoring for companies. The best of these business loan credit bureaus internationally is Dunn & Bradstreet. Other familiar ones include Experian Business, Equifax Business and FDInsight. Once you apply to receive your trade credit report, these privately owned and operated companies delve into all aspects of your corporate credit and even look into public records and business tax records to create a report and give your company an appropriate score range from 0-100 . An average of 75 is considered a reasonably good score.
Advantages of Business Credit
There are quite a few perk and advantages that are associated with having good business credit. Small business credit gives you the feasibility to apply for small business loans as well as get business credit cards.
The best aspect of using a business related credit card is that its only purpose is to be used for business expenses like traveling or for a leg up on the startup initial capital required in any business. Many companies offer different business cards. The best thing to do is make an informed choice. Consider all the cards and the perks that they have to offer. The interest rates must be as low as possible with good facilities that are accessible from any part of the country. When you zoom on the card of your choice, be sure to create a good pre-payment plan. This will make sure that no strange debt collection accumulates on your account. All the work that you have put in, in order to sustain good business profile will go down the drain, if you can not make payment on the business cards that you have.
To Sum It Up
There are many credit building programs that are available online and other that can teach you how to build business credit fast and in an appropriate manner. Some professionals also are available to help you do this task. Fortunately, their fees are not all that high when you consider what you stand to gain. You have succeeded as soon as you stop using your personal credit for business expenses. It may take some time and patience but it is well worth it at the end of the day.