We Can Show You How To Build Business Credit Even If You Are a New Business
Establishing business credit is an important step for any new small business and helps you to: (1) maintain a credit history separate from your personal credit history and experience the business benefits of having good business credit, and (2) demonstrate separation between owners and the business.
Unless you’re operating your small business as a sole proprietorship or general partnership, you need to demonstrate that the business is separate from the owners. One of the key benefits that corporations and limited liability companies (LLCs) provide the owners is protection of their personal assets. Keep this protection in place by consistently showing clear separation between the owners and the business.
It takes time — and some smart moves — to build a strong business credit score, which is similar to your personal credit score in that it allows potential creditors to judge what kind of a credit risk your business poses.
After you’ve established your business you should next incorporate or form an LLC, or limited liability company, the credit bureau Experian says. Much like with personal credit scores, Experian is one of the credit bureaus for business credit, along with Equifax and Dun & Bradstreet, which is the big dog of business credit bureaus.