A business owner always has dozens of things on their mind at a time. One thing to prioritize, especially early in your company, is your business credit. Strong business credit gives you the flexibility to expand when the opportunity arises, relocate if necessary, or take out business loans. It takes diligent effort to build business credit and these tips can help you accomplish it.

Pay Bills On Time To Build A Solid Credit Score

Not many things will hurt your business credit more than neglecting to pay bills on time. You should ideally pay your bills by the due date, but earlier is even better. Pay the balance in full if possible, or at least pay the minimum every month. If this puts a strain on your finances, then consider prioritizing which bills get paid in full. Payroll, rent, utilities, and taxes should be paid in full and on time every time. Credit cards and other small debts can be lower on the priority chain, but should still meet the minimum payment required to avoid a business credit problem.

Use Net-30 Accounts For Some Vendors

Net-30 accounts allow you to pay vendors 30 days after making a purchase. When you pay them during the 30-day window, you’ll build business credit over time. It’s recommended to set up several net-30 accounts with vendors and remain in good standing with them. Doing so demonstrates your business is financially responsible with good credit management.

Apply For Business Loans Or A Business Credit Card

Your journey to building business credit may also involve applying for business loans or a credit card. You will need to have a credit history to receive a sizable business loan, which makes it even more important to prioritize your credit in the early stages of your company. And whether you need a loan or a credit card, always be sure to have a plan on how you will pay off the debt so you don’t run into a business credit problem.

Keep Personal And Business Finances Separate

If your goal is to build business credit, then keep your personal finances separate. By paying business debts with personal accounts, creditors will assume you’ve incurred more business debt than you can handle. This will limit the credit you can receive in the future and stunt your business growth significantly.

If you want to establish and build your business credit contact Brighter Day Credit Solutions today. As experts at helping business owners build their credit, we will guide you every step of the way!