How to Build Business Credit on a Shoestring Budget
Many businesses start on a shoestring budget so it can be challenging to build the business credit you need to expand your business. But every business has to start somewhere and building your business credit can be done with the right action plan to guide you.
In this article we’ll cover how to build business credit without cash flow coming into your business.
The first place to start is with your existing operating expenses. Did you know the payments you already make on a monthly basis for expenses such as your business phone line, internet and utility accounts, can be reported to a business credit reporting agency? Unfortunately, many of these service providers do not report your company’s monthly payments to the business credit reporting agencies, so you don’t get the benefit of paying these bills on time.
The good news is there are data reporting services that allow small business owners to link their eligible accounts and have the payment history automatically report to a business credit reporting agency. This allows you to have this information reported to one or more of the business credit agencies which will build and improve your business credit reports.
As you know an established business credit report and score may lead to better rates and terms for business credit cards, lines of credit or loans from banks, card issuers and lenders.