Starting a new business is a challenging endeavor. Having to determine a means in which to fund it is equally overwhelming. This is why we thought you might be interested in tips for getting credit for your video business. This will enable you to make the purchases necessary to get the business up and running. Establishing a line of business credit doesn’t have to be as hard as it sounds.
You will first want to look into the best credit repair companies if you have ever had issues with your credit scores. There are tons of companies advertising their ability to help you with this issue but it’s hard to know which ones are legit. The site we linked to will help you better understand how to look for those scammers. That way you’ll be well on the path to getting the right kind of credit for your business. Especially, if you take the tips that follow seriously.
The Steps to Business Credit
Obviously, you know how to get personal credit. And, that paying your bills on time will help you maintain a healthy credit score. But you may not be aware of the steps to business credit. While this might seem like a mysterious world to new entrepreneurs, it doesn’t have to be. It’s really not that different than getting personal credit. So, here are the steps you need to know:
- Get incorporated. You have to separate your business from your personal finances. And, in order to do that you must have a legitimate business entity established under all the legal regulations. Don’t opt for a sole proprietorship or partnership, ensure that you make it a limited liability company (LLC), or pay the extra to add the INC behind the company name.
- Acquire an EIN (Employer Identification Number). This isn’t hard. You simply have to contact the IRS for this EIN. It’s like having a social security number for your business. You can learn more about how to get one here.
- Get your DUNS number too. Dun & Bradstreet is business credit’s main adjudicator. Having a DUNS number creates a business credit profile number. This will help lenders know where your business stands financially prior to extending your company a line of credit.
- Open two accounts at the bank. You’ll need a standard checking account. One that is not linked to your personal account is essential. You’ll create the account under your business’ name and you will utilize both the EIN and the DUNS number. Then open a savings account, or you could get a CD that’s tied to the business checking account. Make sure you put some money in both.
- Try to get vendor credit. Having all the numbers and accounts in place will do wonders for your business ventures especially as it applies to receiving credit. Start small, like with the phone company. Add utility bills in the business’ name. A local office supply store might be a good place to first seek a line of credit. Learn more.
- Apply for and receive a loan. Use your new bank accounts to obtain a small loan from the bank in the name of the business. You can use the money in the savings account to secure the bank loan, that will make them more likely to give you the loan.
- Pay your bills on time. Ensure that you pay on time and in full. Sooner than you can imagine your business will have a positive credit rating and you will be able to gain additional credit opportunities.
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