How to Build Business Credit
After finding a product you believe in enough to build your business, you’ve got to make sure that you are financially covered –that means everything from having the perfect investors to having A+ credit.
Lenders: –for instance, universities who have development funds or a government agency that has micro level loan options. If you’ve already sunk your teeth in the meat of the market and need lucrative investors, borrow money from a commercial bank, though it would be wise to seek money from a government-backed agency, ensuring you get the money you need at a reasonable interest rate.
Personal Credit: Though it’s always best to keep your personal and professional lives separate, sometimes it can’t be avoided. If you have shaky credit at home, it’ll inevitably follow you into your business. If you’re considering sole proprietorship you’ve got to make sure that you maintain rock-solid personal credit. It doesn’t bode well to investors if the CEO of a company has a less than stellar credit history. You’ll also be at a disadvantage when wanting to borrow money from a commercial source –lenders aren’t too happy to give their money to a business owned by someone with a problem paying it back.
Buy: It may be in your best interest to buy products from well-known businesses. If you have great rapport with a business that holds some merit in the market, word will get back to business credit reporting agencies and your credit history will be on the road to brilliance.
Getting started is the easy part; maintaining your credibility in the business world, however, takes a bit more effort on your part. If you’re willing to do the work to make sure that your business remains on solid ground, then you’re 80% there.
