Are you looking to grow your business but don’t know where to start? A great place to start is by building a solid business credit profile. A good credit score can help you access funding, lines of credit, and other resources to help your business thrive. Trifecta Credit Solutions will discuss six tips to help you build a strong business credit profile and grow your business!
1. Get a Business Credit Card
The best way to build your business credit profile is to get a business credit card. Business credit cards can help you establish a line of credit for your business, which can be helpful in times of need. Additionally, responsibly using a business credit card can help you build up your payment history, which is one of the critical factors lenders look at when considering a loan or line of credit.
2. Use Personal Guarantors Sparingly
When you’re just starting, it’s not uncommon to use personal guarantors to secure financing for your business. However, you should try to avoid this if at all possible. Every time you use a personal guarantor, you’re putting your assets at risk. Additionally, using too many personal guarantors can hurt your business credit score in the long run.
3. Use Vendor Lines of Credit
If you have vendors you do regular business with, see if they offer lines of credit. Vendor lines of credit are a great way to build up your business credit profile without taking on too much debt. Additionally, paying off vendor lines of credit on time can help you establish a good payment history, one of the critical factors lenders look at when considering a loan or line of credit.
4. Use Trade References
If you have vendors you do regular business with, see if they offer trade references. Trade references are like mini-testimonials from vendors that vouch for your business’s good standing. Trade references can help build up your business’s credibility, which can be helpful when applying for loans or lines of credit.
5. Get a Small Business Loan
Another way to build up your business credit is to take out a small business loan and repay it on time. Lenders will report your payments to the business credit bureaus, which can help boost your business’s credit score.
6. Pay Bills on Time
Improving your business’s credit profile is essential to paying all your bills promptly. It includes vendor invoices, utilities, rent, and any other accounts you may have. Late payments can damage your business’s credit score, so staying on top of your expenses is crucial.
Building a strong business credit profile takes time and effort, but it’s worthwhile in the long run. If you’re not sure where to start or need help getting your business credit score up, contact Trifecta Credit Solutions serving Baltimore, MD. We can help you get on the right track and boost your business credit rating so you can access the resources you need to grow your business. Ready to get started? Contact us for a free consultation today!