How to build business credit? This is a question many business owners ask and if they don’t, they should. I’ve written on this very subject and have a narrated presentation I posted on YouTube entitled, “Why and How to Build Business Credit”. It’s nice to know others are thinking of the same thing…and attempting to spread the word. Here’s an excerpt from an article I read today on Mashable.
“Establish Business Credit History :
Check if your trade vendors are reporting your payment history to one of the major reporting companies, like D&B. Just like with your personal credit score, the more vendors that report a good payment history, the better your business credit will be. It’s common that small trade vendors won’t report your payment history to D&B. In this case, you should compile a trade reference sheet with at least three references (include their name, contact information and credit limits) to augment your official business credit report. In addition, you should open a business credit card (in the name of the business) and use it wisely — meaning keep your balance low and always pay on time.
This is excerpted from an article entitled, “How to Establish Business Credit“. (Click on the title to read more.) The initial points are basic but the article is about establishing, not building business credit.