When trying to establish your business credit you might be tempted to take a few short cuts to get you to your goal faster. Here are some short cuts to avoid:
Don’t “Buy” Business Credit.
There are many websites online that offer the sale of trade references. Avoid these companies! There are trying to cheat the system and the credit reporting agencies will find out and your credit file can be affected negatively.
Shelf Corporations.
Many people buy aged shelf corporations to help give them a boost. But beware of companies that makes guarantees about getting a loan with their shelf corporations they have for sale. Most of the time, the shelf corporation will not have an established credit rating already.
An Alternative to Bad Personal Credit.
Many individuals are drawn to getting building business credit because their own personal credit is bad. Well, we recommend that you first try to fix your personal credit. You can easily ruin business credit if you do not have the financial skills to maintain good personal credit.