Building Business Credit
There are a lot of factors that are important in business credit building. In order for a creditor to extend your business cred these factors must all be in perfect order. If you don’t meet one of these requirements, you will probably be denied and the creditor will never tell you why.
First, make sure you have the proper state and federal licenses you need for your business. If you are required to be licensed, you need your license before you apply for credit.
You will also want to make sure you have your business bank account set up. Merchants will not extend you credit unless you have a business bank account with the name on the account the same as the name on the incorporation papers.
You will need a physical location or virtual office for your business also. You can be approved for much more credit if you have a credible business with a real location. United Postal Service and Post Office boxes won’t work, you will need a real physical address.
Another factor merchants look at before issuing credit is whether you have a set up a business website and have a working email address. Again, they are looking for a credible business. Most legitimate businesses today have their own website and professional email addresses. Banks will be looking for those before issuing credit.
You will also want to insure your business has a real phone number that is a land-line, not a cellular phone number. And you will want to insure you have a listed phone number. Most merchants will do check to see and if your phone number is listed prior to extending credit.
There are many factors involved in ensuring you get approved for business credit. While we discussed just a few of the many factors you will want to meet, there may be more involved before your business gets credit approved. If you have any questions or would like to discuss ways to obtain business credit, please give us a call.