Need a business loan but you’re not sure how to build a business credit profile?

Financing is a critical part of growing a small business. Nothing is more important to the health of a small business than having the right financing in place.

Building business credit is about establishing on time, or early, payment histories and having those payment histories reported to the three business credit reporting agencies. Therefore, building your business credit takes time, careful planning, and being educated on what steps to take. The following are steps to Building Business Credit.

1. Create a Legal Business “Entity”. In order to create and build a “business credit profile” that is separate from your personal credit, you will need to structure your business as a Corporation or LLC. If you need help establishing your business entity, go to www.mycorporation.com and review your online options.

2. Apply for an EIN. Business credit is tracked using your business name, business address and employer identification number (EIN). You may apply for an EIN from the IRS online at www.irs.gov. Every corporate entity must file a SS-4 form with the IRS to obtain their EIN. Read More