Steps to Build Business Credit

After a few years of banks keeping a tight cap on extending credit to businesses, these companies are starting to relax a bit. If you are looking to get credit for your business there are still a few things you can do to help make it easier for you.

Get a business license. This first step might seem obvious but is often overlooked by smaller businesses. Many banks will require one if you are applying for a loan or business credit card.

Establish your online presence, get a website. Getting a website can be simple and inexpensive, but the benefits are worth it. Credit files now list your business website on reports. Get a real phone line. Many creditors want to see you call back from the number you have applied with. Getting a real business phone line will get you listed in the 411 directory while giving you an easy credit reference.

At times some small businesses try to take shortcuts that cost them in the long run. Do not use a UPS Box or something similar for your business address. Also, do not get greedy or overly anxious about applying for credit. Do not apply for more than 2 or 3 business credit cards every week or two. Constantly applying for credit can lower your credit score.