When you grow your business faster, you are able to leverage more debt faster (i.e, other people's money), which is the key to grow your business faster. Get better credit terms for your loans. Get faster loans for your business.
The best way to start growing your business credit faster is to have an Experian or Equifax Trade Line account. These accounts are great because they offer easy access to your business credit bureaus. Once you get an account set up, start paying on it consistently every month and pay off those trade lines.
Your business credit is built by your ability to collect payments and pay bills on time. You do this by having a steady and predictable source of income, trade lines and suppliers. These sources are also what pull down your trade lines, your suppliers and your credit cards. They must all be paid on time or they pull your credit down.
To grow your business credit fast you must maintain a good trade line. This means you must only get suppliers who have a positive trade line with you. It is as simple as that. If you have clients to pay, it means you have trade lines and this gives you a positive credit history.
Now that you have a good trade line and you are paying on time, you should have no problem getting new business credit. If you work hard to get credit to build your business credit fast, your company will build credit quickly. So don't wait until your company is in trouble. Do something about it and watch your credit record grow!
One way to help your business credit work for you is to start out small. For example, if you have a business license, have been in business for more than six months, have a lot of trades and customers, then you should start with your business credit card. With the EIN you can build credit from the start and then pay your bank account on time. This is a much faster process than applying for a personal credit line that has to go through the bank and be approved.
Another way to establish business credit fast is to add yourself to your spouses social security number. In other words you have to have your social security number so that your employer can look at your credit report. You may be able to establish EINs for many of your employees. When you apply for a social security card, make sure that you have your EIN number on hand. You can also use it to apply for a mortgage or loan on your home. This will help you show a potential lender that you are serious about using your EIN as part of your credit building process.
You can also use your EIN for building your suppliers list. Make sure that you only do business with reputable suppliers by avoiding suppliers with bad business histories and failing to credit bureaus. As you build your business list, be sure to update all your contact information with good credit bureaus such as Dun & Bradstreet and Equifax. This is an excellent way to build your business list because you have more suppliers who are willing to do business with you.
The credit bureaus do a great job of keeping business lines of credit separate. Your company needs a tradeline to pay taxes and . . . . . . insurance premiums. The credit bureaus keep these tradelines separate from each other because people tend to mix up the different tradeselines for the same items. So, if you have a line associated with payroll, it would be bad credit on your tax return if you didn't have your payroll trade line active.
To access your Dun & Bradstreet and Equifax business credit scores, you need to be able to access them online. This is usually a simple process. You just access your Experian reports online, choose the year you are going to look at and then choose the state or country you are going to look at your report in. If you have an active trade line or credit line, it might look something different on your Experian report, so you should look at your Experian reports to compare the differences between your scores.
Another way to build business credit fast is to get your suppliers and creditors listed with the business credit bureaus. Some suppliers have their own separate trade lines, but many suppliers list their information with all the business credit agencies. It is easy to get your suppliers listed with the bureaus if you ask the suppliers to sign up for your e-mail list. Doing this is free and easy, and it will really help to build your business credit score.