Business Credit: 5 Key Steps

Business Credit 5 Key Steps- Complete Controller

Generating business credit is crucial to growing a company as a professional platform. Even if you’re bootstrapping through the primary stages of your small business or having funds from investors, it will probably develop an optimistic business credit rating.

Business credit can be a useful negotiation tool when discussing products and services with other companies. Precisely, it is a powerful indicator of how financially stable your business is. Without it, your small company will struggle to find loans and credit cards, develop relationships with vendors, and succeed as a new business venture.

Additionally, many small businesses are evaluated on the business credit when they bid on contracts for their services to potential shareholders. Companies want assurance that they work with a reliable associative with a lower risk of quitting the business.   

When keeping your company and personal finances separate, the primary step is to start generating credit in your company’s name. The five steps below will position your small business for credit success.LastPass – Family or Org Password Vault

Establish a Separate Entity for Your Small Business

Ideally, entrepreneurs consider getting credit before starting a company. Business credit is the primary consideration for how potential lenders or business partners judge the credit outlook. Limited Liability Corporations (LLCs) exist as individual entities and are usually a clean slate for developing initial business scores and ratings. The individuality of the entrepreneur and small business is often the best approach when establishing your business credit.

On the contrary, entrepreneurship permanently links your private credit with business credibility. Consequently, potential creditors and lenders can rely on your credit score to judge the business.

Register for an Employer Identification Number (EIN)

The next step for generating the business credit is to get an EIN. The IRS requires an employer identification number (EIN) to track the companies for tax purposes. Like the Social Security Number, EIN serves the same purpose for your small business. Generally, entrepreneurs can utilize the owner’s social security number for tax payments, but EIN is mandatory for partnership businesses.

One of the most significant advantages of an EIN is that it helps you generate business credit. Also, the procedure of applying for an EIN is quite effortless.

Get a Business Bank Account

Once you get an EIN, you should get a personalized business bank account with a credit card that fits your small business venture best. As stated above, a business account is required to develop business credit. Additionally, a business credit card represents your business entity. By getting this card, potential lenders or creditors can quickly determine the cash flow management and add the information to your business credit report.ADP. Payroll – HR – Benefits

Get a Verified Business Address and Contact Number

Although the next step might seem easy, getting a verified business address and phone number will consolidate your business’s individuality. A confirmed existence is essential for building business credit because it will register your small business.

When you set up a certified address and contact number, you will develop your first credit trade relationship with the phone company. After considering you a verified business identity, the credit agencies will help you generate business credit.

Monitor the Business Credit Files Regularly

As an entrepreneur, it is essential to monitor every business credit report regularly. The reason is that three diversified business credit reporting agencies have different sources to collect information about the financial stability of your business.

However, you can update your company’s basic monetary information before presenting it to the agencies. If you reveal any obsolete or inaccurate information, you must contact the agencies to make the appropriate alterations.

You might get higher credit approval, loan repayment terms, and better interest rates with a maintained business credit report.Download A Free Financial Toolkit


In conclusion, establishing business credit is vital for the growth and stability of your company. Following these five essential steps, you can position your small business for credit success, paving the way for financial security and growth opportunities.

Learning to generate business credit isn’t like surviving daily, but it’s a permanent success. Strategic entrepreneurs prioritize getting business credit and earning a good credit score because it’s mandatory to thrive in the long run. Eventually, you’ll create a credit history that could last for decades.

CorpNet. Start A New Business NowAbout Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.Complete Controller. America’s Bookkeeping Experts