Here at DKC Financial Inc., our owner started this business because of an experience trying to raise capital in a past business. It was a difficult situation that caused her personal credit to suffer. However, this experience inspired her to share what she knows with other business owners and prevent them from making similar mistakes.
One way we help clients is by consulting them on how to build business credit. While it is most useful for you to sit down in a consultation with us on this topic, we also want to provide free information to the public. So, we have listed three business credit building tips for your consideration:
- Incorporate your business. A simple way to make your business qualify for its own credit score is to set it up as an LLC, S-corp, or C-corp. Unlike a sole proprietorship or general partnership, one of these three business structures makes the business and the owner legally distinct, which allows you to have business credit that is separate from your personal credit. That way, if the business goes under, your personal credit score doesn’t have to suffer for it.
- Take further steps to establish your business. By setting up a professional website, bank account, and phone number with directory assistance, you make your business more attractive to lenders, which is good for business credit building.
- Build relationships with vendors. A great business credit building idea is it work with vendors that report to credit agencies. If you cultivate strong relationships with these vendors by paying early or on time, things will be good for you.