Boost Your Business’s Creditworthiness

Elevate your business creditworthiness by understanding how to establish business credit and maintain good personal and business credit histories.

As you prepare to launch your business, it’s crucial to ensure that your credit is in good standing. A poor credit score is a primary reason why small business loan applications get rejected. It can also negatively affect insurance rates and hamper your chances of attracting potential partners, vendors, and suppliers.

Therefore, it’s imperative to develop and maintain a solid credit score for both personal and business credit lines.

Maintain Robust Personal and Business Credit Histories

Established businesses have an advantage in having a track record of financial stability. However, new business loans usually hinge on the owner’s personal credit score.

While not all small business owners have excellent credit, some may be in the early stages of building it. The Consumer Financial Protection Bureau (CFPB) provides valuable tips to help people with limited credit histories.

The CFPB’s Credit Reports and Scores website is an excellent resource for most people seeking to improve their credit history and scores. If your credit history needs help, the Federal Trade Commission has recommendations for boosting your credit.

Apply for a Business Loan

Establishing and managing your business credit can help you secure financing when needed and on better terms. It can also aid in negotiating supply agreements and safeguarding against business identity theft.

Registering for a Dun & Bradstreet number or DUNS number is one of the first steps you should take. It’s a unique nine-digit identification number for each physical location of your business. Dun & Bradstreet also provides guidance on establishing business credit.

Before you seek a loan or credit line, learn about the legal safeguards against discrimination.

Monitor and Control Your Credit

Regularly monitor your personal and business credit reports, particularly if you suspect identity theft.

• To monitor your personal credit, visit the Annual Credit Report website, the only authorized source for free reports guaranteed by law.
• To check your business credit, obtain a copy of your business report from Experian, Equifax, Dun & Bradstreet, or other smaller credit reporting services.

Discover additional resources to assist you in monitoring and controlling your credit.