Every business needs a consistent, steady source of funding. The best way to have sufficient funding is to build your business credit fast. A strong business credit profile is a gateway to several available business opportunities: secure investors, gain customers, equipment rental, access to loans and more.
Establish business credit fast so you can have the funding you need, when you need it. Here are five ways to do it.
- Processing Fee Reporting
If you’re already accepting credit card payment from your customers, it’s best to have a merchant provider that builds your business credit. Every time you accept a credit card payment, your business can build its credit profile with processing fee reporting.
Merchant providers charge for their services and these fees take a percentage of every credit card transaction and a per-transaction fee.
Therefore, making the switch lets you benefit further from something your business has already been doing – from timely payments to processing fee reporting, to eventually building credit profile.
- Business Credit Building Card
Not all credit cards can help you build your business credit. On the other hand, there are card issuers that report payment activity to you and business credit agencies – both impacting your personal credit.
Since your goal is to build business credit fast, get at least 4 to 5 business credit cards that solely report to business credit reporting agencies.
Every card issued under your company name takes 14-20 days for the funding process. You will be able to develop 4-5 positive accounts that report your company credit profile. Over time, you will establish a credit identity and rating for your business.
- Vendor Line of Credit
You can purchase products or services with net 30-day terms with a vendor line of credit. It will help you create a positive trade reference for your business and keep your cash flow going.
A vendor credit is one of the easiest to get since most vendors have minimal requirements and don’t require a personal credit check.
Despite the numerous vendors that offer comfortable credit terms to your business, make sure you choose a vendor that report to business credit agencies. Remember, make your credit options work for you in more ways than one.
- Retail Business Card Account
There are major retailers that offer business card accounts to budding businesses. Retail business card accounts work similarly with any credit card with the important exemption: you can only use it at your issuing retailer.
The retailers that provide this include Sears, Costco, Home Depot, Best Buy, Lowes, Best Buy and more. You can avail of several benefits including discounts. However, make sure to pay your balances in full as interest rates tend to be higher than business credit cards.
- Company Gas or Fleet Card
Manage your fuel expenses with a gas or fleet card. You use it for tracking fuel, maintenance and repair of your company vehicles. A gas card is best for a single vehicle, while a fleet card is ideal for high gas usage businesses with its cost savings offered.
Regardless, both cards help build your business credit as they report to business credit reporting agencies. Take note that you need an existing credit report and score to qualify for a gas or fleet card.
Remember the most important factor in building your business credit fast, make a consistent check with the credit bureaus where your lenders are reporting. Are they reporting accurately and on time? The business credit report affects your business operations, stay on top of all your efforts.
I’m a 7-figure business startup consultant, best-selling author of “The Wealthy State of Mind,” and international motivational speaker, with a passion for helping entrepreneurs achieve success in business. Using the methods I’ve developed from helping businesses achieve success over the past 10 years, the Entrepreneur Academy was born. Inside, entrepreneurs are taught the fundamentals of building a successful and profitable business based on real-world tactics that are responsible for generating millions of dollars in business profits.
