A placement agent can help you raise money for a business venture – if you have opened a business you know it is almost impossible to continue without business credit. However, you may be unsure how to get the needed credit to build and expand your business. It is actually not that hard to get credit. In fact, the hardest part was starting your business and you have already completed that step. So let’s get you the credit you need to build a strong business.
1)Incorporating The Business – You must incorporate your business if you want it to be a separate entity from yourself. The problem with sole proprietorships and general partnerships is that they are legally the same as the owner. Either form an LLC or incorporate before moving further.
2)Obtain An EIN- This is a federal tax identification number or social security number for your business. This is an essential number that is required to open a business bank account or order from business vendors.
3)Open A Business Banking Account – Using The EIN open up a business checking account in which you will use for all business transactions.
4)Order A Business Phone Number – Establishing yourself as a real business is required and one must have a professional line that is separate from the personal life. Simply get a new cell, landline, or VOIP line. Ensure that the number is listed in all relevant directories.
5)Open A Business Credit File – Contact all three credit agencies and open a new file with your business name and EIN.
6)Establish A Business Credit – Choose a card company that you have no association with and open a new account. Make sure it is one that reports to all the major credit reporting agencies.
7)Contacting Individual Vendors – Get in touch with several vendors and open accounts with each of them. Have them report your prompt payments to the credit agencies as well.
8)Pay All Bills Ahead Of Time – In a perfect world, we would all be ahead on our bill. While this is an excellent practice for building your business credit accounts it is not always plausible. However, it is essential that all bills are bad on time. Keep your business accounts in pristine standing at all times.
Now you know the 8 simple steps to getting a business account built and started. Once you establish your business credit accounts keep building them as they will become an important asset in your business.