It’s important to build your business credit if you want to succeed as an entrepreneur. Whether you’re looking to finance the launch of your new business, or simply looking to get better deals on future loans and credit products, learning how to build business credit can pay off big time in the long run. The good news? Building business credit isn’t very difficult. Here are five simple ways you can build business credit right now!
Get A Credit Card
You may be wondering, Can I use my credit card for business? Your personal and business cards are considered separate entities. However, if your card is in good standing and you have a decent credit limit, it’s wise to keep some of your expenses on that card. This will boost your score while also giving your company some credibility. There are many other ways to start building or rebuilding your company’s reputation, but this one is pretty simple!
Use Your Debit Card For Everyday Purchases
Start small by using your debit card for everyday purchases. If you have a good relationship with your bank and you regularly use your card, this will help to build up a history of on-time payments. While it may take some time to establish your credit, in the end, this will save you money and headache.
At some point, if your business has grown enough that it needs to borrow money, then banks and other lenders will be looking at the company’s financials as well as any personal information they can find on the owner when deciding whether or not to offer a loan. A strong track record of on-time payments will go a long way in helping them make an informed decision.
Ask For An Increase In Your Limit
I am writing to ask for an increase in my current limit. I’ve been a customer for nearly many years, and for those five years, I’ve made sure to pay off my balance each month. This is evidenced by my excellent payment history with the company. I have also consistently used my card and paid the minimum amount due. Please review this information and let me know if there are any questions or concerns before agreeing to grant me an increase in my limit.
Have Your Utility Bills Sent To Your Business Address
One of the easiest ways to build your business credit is to have your utility bills sent to your business address. This may not seem like a big deal, but the reality is that most of us would be able to get more favorable rates for utilities if we were doing this already. Call up the company and ask them how much it costs for having service or natural gas delivered to your place of work. It will vary from one provider to another, but it’s worth looking into. While you’re at it, ask them what other services they provide in addition to that one product, and if they offer any discounts on those services if they are billed to the same place.
Invoice Clients With Your Business Details
There are a few different options for clients, which will help you to start building your business’s credit. One of the easiest and most popular methods is to include your name and address on the invoice, as well as your company’s legal name. If you do not yet have a logo, including the company’s initials will work just as well. Be sure that all of these details are legible and in black ink so that they are readable by the client.
