Businesses have credit reports and scores the same way that individuals do.
You might have the perfect business plan, but the lack of a good business credit score will hinder your growth. A low credit score can make it difficult for your business to qualify for the financing you need. It doesn’t necessarily have to be that way, though.
Business credit repair services instruct people to take the following steps to establish their business credit score and secure better financing options:
Get Your Business Registered
First and foremost, you need to take the most important step of registering your business as a separate legal entity. Choose a structure for your business from:
- Limited Liability Partnership (LLP)
- Limited Liability Company (LLC)
In the event that you’re unable to repay your business debts, registering your business will keep your personal assets safe.
Get Your Employer Identification Number (EIN)
Registering your business with the IRS is simple, free, and can be done online through their website. Once registered, your business will be issued an EIN, also called a federal tax ID. You’ll need this nine-digit number in everything from filing tax returns and applying for a business license to set up a bank account for your business.
Which leads us to the next bit of advice.
Set Up A Bank Account for Your Business:
There’s no reason for anyone to run a business without a bank account in this day and age. Setting it up is a necessary requirement for the purpose of creating a distinction between your business and yourself.
Setting up a business bank account can be done in minutes.
Increasing Your Business Credit
Once the steps of registering your business, obtaining an EIN, and opening a bank account for your business have been completed, your business credit is as good as established. You should now focus on increasing it.
The single biggest way to boost your business credit is to keep up with your payments. More than a mere hack, this is the sensible thing to do. As a new business owner, you’ll be learning on your feet every day, and things might move fast. But remember to be diligent with vendors’ bills, credit card payments, and loan repayments.
In addition to all this, enlisting the help of a professional credit repair service is well worth the expense. A dedicated credit repair specialist can guide you on how to keep your credit score up through the good times and the bad.
With over three decades in the industry, we’re well-versed in helping businesses both big and small, to boost their credit scores. Our team of knowledgeable business credit advisors can help your business reach its fullest potential. Claim your FREE 15-minute consultation by getting in touch with us today!