10 Steps To Build Business Credit
Having a solid business credit profile might help you secure more-desirable loan terms, qualify for better premiums and negotiate with vendors. But building business credit can take time and attention to detail.
Simply put, business credit signals your company’s ability to handle its finances, purchasing power and debt.
Like personal credit, business credit is something you build over time. Business credit considers several factors and is expressed in the form of business credit scores.
Additionally, both business credit and personal credit can affect the rates you might pay for goods and services. For example, as a business owner, you may pay lower insurance premiums if your business credit scores are high. You might also qualify for lower interest rates on small business loans or lines of credit if you have good business credit.
These may all come in handy if you’re looking to negotiate longer terms from vendors, which might give you more space to manage cash flow.
We’ll cover the basics of what business credit is, how it’s used, and tips on how you can build your business’s credit.