Starting a new business is a significant step in building one’s future. However, getting a business of the ground is not as easy as it may appear. There are many obstacles that an ambitious entrepreneur is going to face while trying to get his or her business off the ground. The good news is that many of these issues that new business owners face can be avoided if one takes the time to organize and prepare.
- Obtain a business credit card. One of the easiest ways of building your business credit is by obtaining a business credit card. Business credit cards have all the functions of your regular credit card but it is also equipped with certain features that are especially designed for a business.
- This separates your personal account from your business funding. Business credit card companies will send you a summary of your account quarterly or yearly which you can use as reference to your business financing.
- An online access to your account is also provided so you can keep track of your business purchases regularly and use your record to help you with your accounting and bookkeeping tasks.
- These features truly make a big difference in managing your business more efficiently and easily.
- Business credit cards come with higher credit limit and bigger reward programs. As a business owner, earning cash-back incentives, travel rewards or discounts are great benefits you can take advantage of. Aside from this, a business credit card is a great tool in preserving the cash flow of the business.
- Remember that business credit cards are great for building credit for your company and treat it as such. This is a valuable preparation for the future growth of your business. With a strong business credit to back you up, you can be confident that getting a loan or obtaining additional funds for your business plans will not be difficult.
- Aside from getting a business credit card, what other steps can you take to ensure that you’ll be establishing a credit history for your business?
- Apply for a business license. Applying for business entity and a license is important since this will ensure the legality of your company. Don’t forget to apply for your Employer Identification Number or EIN for your business taxes.
- Register with an accredited business credit tracking bureau. Dun and Bradstreet and Experian are currently the leading names in providing business credit tracking services. Registering with a credit tracking company will guarantee that all your business payments and transactions are properly reported and recorded in your business credit report. As a reminder, check that your business credit card company regularly reports to business credit bureaus.
- Make sure that your business credit card issuer regularly reports to business credit agencies as well.
- Pay your bills on time to avoid bad credit.
Things You’ll Need
- Business Credit Card
- Credit history for your business
- Register with an accredited business credit tracking agency
- How to Understand Your FICO Credit Score
- How to Improve Your Credit Report Score
- How to Avoid Bad Credit
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