Starting a career as an entrepreneur is a compelling dream. If you decide to make this dream a reality in the form of starting your own small business, establishing and maintaining a business credit profile is essential. There is a wide market in the credit business geared towards the small business sector, and using your resources wisely will benefit you and your fledgling business.

Although your personal credit score is separate from your business profile, it cannot be stated enough that you should keep your finances in good standing and lower your debts to raise your credit score, especially considering that your profile will likely be checked in the early stages of your business ownership. It will be easier to get financing from unofficial sources, such as your friends or family, or local business initiatives that have funds for start-ups.

 

Keeping accurate ledgers of your business transactions is also one of the smartest things you can do. Creditors are interested in seeing your dedication to fastidious finances and need proof that you will be a trustworthy representative to lend to. A good tip is to print out copies of your credit report to give to prospective lenders, since that reduces the number of “hard inquiries” made on your credit report. Too many hard inquiries can significantly lower your credit rating.

 

Establish small business accounts with companies offering services you need (Staples, FedEx, Office Depot, any specialized goods your company requires) and pay off their plans on time, every time, to raise your credit score. One benefit of some business credit plans is that your credit score will immediately start to improve if you make early payments.

 

After you have several accounts in good standing and your business has started to make profit, start taking out business loans and credit cards. If you have been diligent in keeping your records and making your payments, your business credit rating should be 80 or so out of a perfect 100. It will be more difficult for your company to obtain a business credit card, since banks offering small business solutions often do not extend credit to businesses younger than two years old. With enough footwork and polite letter-writing and personal visits, however, you will likely find a bank willing to strike a credit deal with you. Do not use your personal credit card to finance your business or open a new one under your name, since it has to be in your business' name for the good credit to positively impact your business.

 

Common sense, steadfast financial habits, and persistence are necessary for your business to flourish. Owning your own business is a dream worth pursuing, and you have the strength and resources to achieve your goal.