There is a step by step process that helps to structure your business correctly and build a solid credit portfolio under your company name. Having a company do this for you
allows you the freedom to operate your company, while they build your business credit! This can be done without using your personal credit or personal credit information. Whenyou complete the program, companies GUARANTEE you will have an “A” credit rating built under your company name!
Step One: Structuring Your Business
Your company must be incorporated or filed as an LLC. If you are already incorporated or filed as an LLC, great! If not, you will first need to incorporate your company. Whether you need to file as a C-corp., S-corp., LLC, or Non-Profit. The average completion time for filings is 10-15 business days but varies from state to state. Incorporation equals strength and credibility in the eyes of the creditors!
Step Two: Credit Bureau Checks
Next, a complete credit check with the major credit bureaus used in business credit needs to be preformed. The top three business credit bureaus are Dun & Bradstreet, Business Experian, and Business Equifax. This will determine the company's starting point in building your business credit. Newly formed corporations will have blank credit profiles. If you have been incorporated for some time, it will show if there is any negative reporting under your company's name.
Step Three: Registering Your Company with the Credit Bureaus
After checking your business credit with the credit bureaus, you will then need to register your company with the top three. (Dun & Bradstreet, Business Experian, & Business
Equifax) You must open your credit profiles with the credit bureaus so that creditors can report your timely payments. This will allow you to build your business credit and establish your business credit score.
Step Four: Obtaining Business Credit
With each line of credit established, you will need to make a minimum $50 purchase on that account so that a payment history can be established at the credit bureaus under your business name. You do not have to use each account each month, but you must use them at least one time to establish a payment history at the credit bureaus. It is helpful to use your accounts on a regular basis, keeping your purchases reasonably small. Creditors like to see that you are using and managing your existing credit well.