Building and Managing Your Business Credit Score Can Be Easy

All small business owners have to concern themselves with fundraising, since very few businesses are so lucrative that they can operate without any external infusions of cash. That makes it important for you to build up your business credit score, especially if you have plans for business growth in the near future.

Be aware of your business and personal credit scores

It’s a good idea to always be aware of what your business credit score is, and to do this you’ll have to consult with one of the major business credit bureaus, e.g. Equifax, Experian, or Dun & Bradstreet. Some lenders make a point of checking your personal credit score, especially if your business has only been in operation for a short period of time. Other lenders will check only your business credit score, and some lenders will check both scores.

Establish good business credit

If you haven’t been in business long enough to establish a credit score, or if you’ve been using a personal credit card to finance your business, you may not have a business credit score built up yet. It may be necessary to either incorporate your business or form a limited liability company, so that your personal identity can be separate from your business. When you make purchases from vendors, ask them to report your on-time payments to a business credit bureau.

Apply for a business credit card

Building a credit history and managing it well should include applying for a business credit card, so that your business transactions can be reported and tracked by the credit bureaus. Business credit cards also provide some advantages and reward programs that can be very helpful to business owners, and can provide perks which personal credit cards seldom offer.

Be sure to pay vendors early

The Dun & Bradstreet credit bureau bases its credit score of your business almost entirely on your payment history with vendors. This means that paying on time can get you a very good score, and that paying early will help you earn the highest possible score. On the other hand, if you are routinely late with payments, you can expect to have a poor credit score, at least with Dun & Bradstreet.

Your business credit score and JNI Lending

Even if your business credit score is not as high as it could be, you may be eligible for financial assistance from JNI Lending. Contact us today so we can explore possibilities for financing your future business growth.

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