Build Business Credit
In today’s post we share five key strategies for building business credit easily and quickly. These five strategies provide a fast and efficient way to establish your business credit file with major business credit reporting agencies.
If your new to building business credit it’s important to recap on why it’s an essential step in the success of your business. So, what is business credit?
Business credit is the ability for a business to borrow money or access products or services with the understanding that the business will re-pay at a later date.
Building business credit allows a business owner to protect personal credit while establishing the creditworthiness of the business itself.
When you structure your business as a corporation or limited liability company it becomes recognized as a separate legal entity with the ability to enter into contracts.
Your company’s Employer Identification Number (EIN) is used to identify your business entity to the IRS, banks, lenders, suppliers, vendors and other businesses.
Your EIN is also used to create a credit file for the business with business credit reporting agencies such as Dun & Bradstreet, Experian Commercial, Equifax Business, Creditsafe and Ansonia.
Think of your company’s EIN as the social security number for the business.
Here are 5 strategies to start building business credit easily and quickly.
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