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Simpler,Easier and a lot Less Expensive

Building Small Business Credit History

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You probably know that your small business has its own credit score separate from your personal credit score, but that might be as deep as your knowledge goes. If that’s the case, you wouldn’t be alone. “Business credit scores right now are where personal credit scores were a decade ago; they are still very much a mystery,” said Gerri Detweiler, head of market education at Nav.

But like your personal score, your business credit score must be cultivated and nurtured if you expect it to be a useful tool when you want to borrow money.

One fast and easy way to build your business credit score is to establish relationships with companies that report payment history to commercial credit agencies like Experian or D&B, said Detweiler. Business credit cards, for example, will do the trick.

Another option “is to establish ‘trade’ credit with vendors who report. For example, if you buy supplies on terms (where the invoice is due in 30, 60 or 90 days, for example), and the vendor reports that account history to a credit agency, it can help you build business credit,” said Detweiler.

For more information about building your business credit score, attend the Manta Trends webcast “How to Boost Your Small Business Credit Score.”