Business credit references are necessary to develop. You can do this fairly easily. The first step is to contact the vendors you do business with on a daily basis. These vendors will usually give you a vendor account even if you do not have a long financial background.
The most valuable point to remember when opening these accounts is always used your business identity and information, not your personal identity and information
Be sure to go to the IRS website at IRS.com and obtain an EIN number. EIN stands for "employer identification number." It does not matter if you have a thousand employees or you do everything in your business alone, your business needs this number to stand alone as an individual. Use the EIN number in place of a social security number when applying for credit in your business' name. You should seek to open at least five vendor accounts. More is acceptable if you can keep up with them and actively use them.
Once you have established several vendor accounts, be sure to make your montly payments on time. After a few months, your business will have business credit references for banks or other investors to look at when considering doing business with you.
As you build your credit, you can also seek bank credit cards. These cards are available to businesses the same as they are to individuals. Check with the Visa and MasterCard website to find banks that issue business credit cards. Seek the advice of a finance specialist, only if you are not sure which banks will work best to build your business credit. Of thousands of banks that issue business credit cards, only a few will issue them to a business without the owner's personal information. That is not helpful to your attempts to build business credit references, and it may be dangerously risky to your family's financial stability.
Our Business Credit Building System will guide you through gaining business credit references, advising the best references to have for your business
Your business credit references are of interest to more than just financial backers. Other businesses may check them before doing business with you. More often, perceptive customers are also learning how to check business credit references. Contacting Dunn & Bradstreet, which is one of the business credit reporting agencies is an easy matter. Your businesses credit gives potential business partners, clients, and customers alike a clue as to what to expect from you. Make sure the information those who request your business credit references find figures that are positive.
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