Establishing Good Business Credit: 6 Helpful Tips

Sponsored by BMOAs your business grows, chances are you’ll need to obtain a loan, line of credit or credit card to help finance your expenses.Being approved for any type of financing will be a lot easier if your business already has a strong credit rating. Here are a few steps you can take now to build your business credit:1. Register your business as a separate legal entity:Along with registering your business as a separate legal entity with an attorney (for legal advice, consult an attorney), you also need to apply for an Employer Identification Number through the IRS. Most banks require this number to apply for small business loans or lines of credit. Taking these steps will help protect you from personal liability, as well as protect your business from any personal financial missteps.2. Keep personal and business finances separate:Most small business owners are invested in getting their businesses up and running – and that often includes dipping into their personal bank accounts. However, this makes it difficult for your business to build credit. If you find yourself constantly needing to use your personal accounts or credit cards to fund your business, it might be time to look into getting...