I would like to start a business and would preferably like to start building credit in my business name before I get it going. A lot of YouTubers cover this topic, but most are selling their services and do not go into detail on how this is done.
Thank you for your question. While I can't personally speak to building business credit, I found these articles that include some things to keep in mind as you enter the early stages of starting your business:
Additionally, I encourage you to utilize our "Community" tab to search for advisors who may be experienced in Small Business - they might have experience building their own business credit and could provide some pointers. I hope this helps!
Staff Sergeant Skrine -
Here are two websites to explore
“How to Establish Business Credit That’s Not Linked to Your Personal Credit Score”. Click on the download now button and fill in the information.
Ways to Build Business Credit Fast …www.fundera.com
1 Register your business entity. 2 Get an employer identification number (EIN). 3 Open a business banking account. 4 Establish a business address and phone number. 5 Apply for a business DUNS number. 6 Open credit lines with your suppliers. 7 Get a business credit card or business line of credit. 8 Borrow from lenders who report to business credit bureaus. 9 Keep business information current with the bureaus. 10 Pay all business bills and loans early or on time.
Good luck Sergeant
The first step to building a business credit is to get an LLC with an EIN number under a certain state. You then get a bank account set up for under the EIN number and get a vendor for transactions that you do for you business. Get a physical business address and apply for something as small as a gas card under the business name and address. If you can support your business by funding it to lease a car under the EIN and write it off under your business you can build faster credit that way as well.
Your business is like another person and the EIN is the identity that you will use with your accountant to file taxes. After one year you can check into applying for other credit sources. I also find that vendors like Squareup and PayPal business track your transactions by algorithms and after a few months you can apply for a loan from them with no credit check required.
I am on LinkedIn if you would like to connect with me there.
Best of luck,
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