When I first started my business, I had no idea that business credit existed or that my new business idea could qualify. The good news is that business credit is a thing, and you can absolutely qualify even if you just started. I’m going to show you how.
First, let’s discuss what business credit is. Business credit allows companies to purchase products and services through credit, loans, grants, etc. It is separate from your personal credit score.
Why business credit?
Well, it takes money to make money. Most importantly, you don’t have to go broke trying to build your business. Also, unlike personal credit, you are not penalized for utilization, and you get access to higher credit limits and loans. Remember, you can do all of this without touching your personal credit.
What can you get with business credit?
The short answer is just about anything. You can purchase a car in your business name. You can get loans and lines of credit in your business name. You can buy property, start an Airbnb, and more.
How does business credit work?
Similar to personal credit, there are three major bureaus. You have Duns and Bradstreet, Experian Business, and Equifax business. Unlike personal credit, business credit is only concerned about you paying on time. If you already have a business, you can check your score on nav.com. If you sign up for the $39.99 plan, it is a tradeline that will help you to build your business credit. Click here to sign up now.
How do you build business credit from scratch?
First, you must have a properly structured business. Unsure of how to do that? Grab a free checklist here.
Secondly, you need a Duns and Bradstreet number. (You may be familiar with the recent Duns and Bradstreet system changes. I wrote about these changes in a previous post. Check it out here. You only need to worry about the changes if you seek government contracts. If you are simply building business credit, you can disregard the change.
Thirdly, you need tradelines like nav.com. Preferably three to five tradelines. You want to secure the tradelines using your EIN (Employer Identification Number) only.
Even if you haven’t started making revenue yet, you can still build business credit from scratch. I breakdown how to do this and more in my business credit MasterClass. It’s only $37 for now.
In the Level Up Your Business MasterClass I cover:
- The 3 Secrets to building business credit from scratch without using your personal credit!
- How to quickly and easily generate a paydex score in 90 days or less.
- You’ll discover the easy way to qualify your business now – even if you are new to the business world.
- How to quickly recognize and avoid being denied funding.
- Personal Credit Hacks
Click here to get access to the MasterClass.
If you are on the path to creating multiple streams of income, you should leverage both business and personal credit to get there. It is truly a game-changer when it comes to building generational wealth for generations to come.
See you at the top,
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