Credit Report
Finding out your small business credit report
The world runs on credit – you can’t get a house, a car or even a cell phone without a good credit report. If you’re thinking of starting a small business, your credit report score can affect your ability to get a loan and get your business off the ground.
If you have a small business, you don’t necessarily have a small business credit score. In order to calculate a small business credit report, the credit report companies must be able to gather financial information about your small business.
If your clients and billers are not reporting your transactions, then the companies have nothing to go on. This can be a problem for you later on down the road when you need to apply for loans or merge with a bigger business. In order to establish a credit score, you need to ensure that your transactions are being reported, and that you are making sure that everything is paid on time.
Business Credit Cards
Obtaining a business credit card can work wonders to help establish a good credit report. In order to get this credit card, you will probably have to use your own personal credit report score to secure it. It’s extremely important to ensure that you have good credit if you’re going to start a small business. Getting a startup loan, obtaining a credit card for business use or even finding a building to rent office space in will require credit.
However, there are drawbacks to this. Using your personal credit can quickly backfire if your business runs into trouble. As soon as possible, speak to your bank or creditors about merging your personal and business credit into one score that you will use to obtain future credit.
Credit Score
Always know your credit score; knowledge of where you stand will give you a better idea of how to proceed with your small business. A free credit report can be acquired online, however, most sites will require you to give your credit card number and they may charge you if you don’t cancel your account within the trial period dates. An online credit report is available from many major, trusted companies for a fee. Your bank will also provide your credit report to you.
Improve your credit score by using credit wisely. Always pay your bills on time. Use a credit card and always pay off the balance every month. Remember, credit can improve at a fairly quick rate. Keeping your business credit in good shape can ensure that you won’t have any problems in the future.
