If you’re a startup business owner, then building credit for your company is one of the most important steps you can take to ensure its long-term success. Having good business credit will give you access to loans and other financing options that can help you grow your venture. It also shows potential customers, suppliers, and partners that they can trust in doing business with you. Building up your business credit score takes time and effort but it is well worth it in the end.

Keep Track of Your Bills

One of the most important things you can do to build good business credit is to pay your bills on time. Establishing a track record of timely payments will show creditors and other financial institutions that you take your financial obligations seriously and are capable of honoring them. In addition, many lenders report timely payments to the three major credit bureaus which can help boost your credit score.

Maintain Low Balances on Your Credit Cards

It’s also important to keep your balances low when possible. High balances on credit cards or other loans can lower your credit score, even if you are making payments in a timely manner. Try to pay off as much of the balance each month as you can and limit how much new debt you are taking on.

Monitor Your Credit Report

Finally, make sure you’re working with reputable lenders and vendors who report your information to the credit bureaus. This will help ensure that all of your payments and other financial activity is reflected properly in your business credit score. Taking these steps can help you build a strong foundation for success as a startup entrepreneur.

Hudson and Hudson Lending offers a wide range of accessible financing solutions to startups. Contact our team today to get the funding you need.