Building Business Credit - 3 Important Factors That Can Make the Difference Between Sink Or Swim

I can not express how important your business credit is to your business.

Business credit is so important, the success of your business can be dependent upon how much business credit you have available.

There are numerous ways you can properly build credit and you should ALWAYS be looking for small things that build up your business credit because they not only add up faster than you think, but they can bail out your business during a rough stretch and keep you afloat.

The best part about business credit is it is not hard to build with a little bit of discipline and organization.

Here Are Just 3 Of The Factors You Will Want To Consider When You Are Building Your Business Credit:

1. Registering Your Business Is Just The Beginning - The first thing lenders will verify when you apply for a loan or credit card is the registration of your business. All the licenses and registrations for your business need to be up-to-date.

If you are not sure about the licenses you need for the kind of business you have, contact your Secretary of State office or Office for Entrepreneur Relations.

2. An EIN Keeps Your Assets Safe - When you apply for an EIN from the IRS, you are protecting your personal assets, because you are no longer liable for company financial mishaps.

An EIN, Employer Identification Number, is easily obtainable through the IRS and does not cost anything. This is the single most important step to building business credit.

3. Payments Through Vendors And Lenders - This is where the organization and discipline come into focus. There is nothing that looks better on a credit profile than a previous commitment with a lender you successfully paid off in full.

However, it may be the first time you are working with a lender and do not have that previous commitment to showcase. If this is the first time you are trying to get funding for your business, focus on the relationships with vendors.

Vendors are any other businesses you work with constantly. Most business owners choose suppliers as the majority of their vendors, because they make the most amount of payments to the vendors.

You are always building credit, so make sure you check your profile and credit score on a regular basis. It is not something you can do once and assume it will stay accurate and up to date.

Sometimes, you may have to send a friendly letter or two to a vendor that has not sent in any information for your profile or maybe give them a nice, short phone call quickly explaining what you need and why. They are business people too so they should understand.

Don't be a doormat, but always consider the importance of any business relationship.