Growing corporate credit is essential for growing a new business and establishing credit worthiness. By growing corporate credit, serious business owners can never be turned down for a credit and do not have to use their personal credit to fund their business operations. Lenders will favor businesses owners with strong corporate credit over those with financially unstable companies.
Therefore, it is very important for business owners to build and grow their corporate credit in order to be able to run their corporations successfully. With that said, here are some important and helpful growing corporate credit tips. Apply them so you can have a successful business with strong corporate credit.
Tip One: Establish business telephone lines and address
You should make sure to establish and register telephone lines with cell phone providers under the business name and EIN for easy communication. This allows your vendors or creditors to easily find you in case of a problem or a serious matter concerning your corporate credit.
Tip Two: Apply for a corporate credit card account
This is not a must but if you want to see your corporate credit grow fast, then it is very important to apply for a corporate credit card account. It is one of the easiest and quickest ways to grow corporate credit. You can even apply for a secured corporate credit card that needs an upfront deposit if your business is doing so well.
Tip Three: Maintain a good payment history
Once you open a corporate credit card, it is very important to build and maintain a good payment history. Learn to pay all the bills on time or ahead of time to build confidence with your lenders. And in case you are not in a position to pay on time, always communicate on time with your lenders so you can work out a proper plan on how you can pay. You should also keep your balances low always. A good credit history will see to the growth of your corporate credit with ease.
Tip Four: Use trade lines
There are various companies that sell trade lines and some will need you to put up some collateral, pay some upfront fees and they will agree to report on time payment for an agreed period of time. However, others will not need you to put any collateral or pay some fees until they have delivered the results you need. Trade lines improve your credit score by reporting on-time payments thereby helping you grow your corporate credit fast
Tip Five: Work with vendors
By establishing good relationship and payment histories with vendors, they report this to credit bureaus. This helps in developing your corporate credit profile as well as growing your corporate credit.
Tip Six: Have a strong personal credit score
Most lenders will check your personal credit record before giving any credit. For that reason, it is recommended to have a good personal credit record as well as your business corporate credit. This makes it easier for anyone to grow his or her corporate credit.