Only some lenders and suppliers will report credit lines and trade lines to the business credit bureaus, where they will be added to a company’s commercial credit reports. Not all business activity is reported on business credit reports. Business credit scores and risk factors that estimate the probability of late payments and business failure.Public records (bankruptcies, liens, judgments, Uniform Commercial Code (UCC) filings, etc.).Payment history and collections (if applicable).Historical business data (date established, etc.).Financial information (annual sales, financial statements, etc.).Business profile (company name, address, owner(s), number of employees, etc.).Or you may not yet have a business credit file, even if you’ve had an established business for some time.Ī business credit report includes detailed information, such as: You may have a business credit file without knowing it. Your business credit reports may also contain other information like the year your company was established and your business registration details. What Is Business Credit?Ī business credit report is a record of your company’s history managing credit such as loans, lines of credit, credit cards, and vendor accounts. We explore each of these steps at length below, so go ahead and keep reading if you’d like a bit more detail. Establish trade lines with vendors, suppliers, and lenders.Open a business credit card and use it responsibly.Check your business credit reports for accuracy.Open a business checking or savings account with your EIN.Register with Dun & Bradstreet and get a D-U-N-S number.Get an Employer Identification Number (EIN) from the IRS.List your business address and phone number in directories, so credit bureaus can find your company.Incorporate to make your business a separate legal entity.The credit-building process for businesses can be boiled down to nine relatively straightforward steps. At a Glance: How Do You Build Business Credit? If you’re after a more in-depth look, simply jump down to our explanation of business credit, and we’ll guide you through the intricacies from there. We’ll kick things off with a quick, actionable overview of how to build business credit below, in case you already have an idea of how it works. A valuable asset if you ever decide to sell your business.A better overall reputation and image for your company.Improved relationships with suppliers and merchants.Smaller deposit requirements on leases and new utilities.Landlords being more likely to lease property (like office space).Lower rates on loans, credit cards, and insurance.Access to business credit without a personal guarantee.Better odds of approval for small business loans.Great business credit comes with a number of potential benefits, some of which could end up saving you a lot of money in the long run. Plus, in some cases, you might need to open a business credit file yourself with the commercial credit bureaus. If a business hasn’t been around very long, isn’t listed in directories, or hasn’t established any trade lines like business credit cards, business loans, or vendor accounts, there might not be any information to show in a commercial report. Not all businesses have a credit history, just like not all people have a credit history. This is especially true for small businesses. However, lenders will typically check your personal credit alongside your business credit when you apply for business financing. But there are some important differences.īusiness credit reports and scores are completely separate from personal reports and scores. If you understand how your personal credit reports and scores work, you’ll have a good idea of how business credit works too. Business credit is pretty much like personal credit, but for businesses.
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