How to Get a Business Credit Profile

Credit issued between businesses is known as trade credit. Such credit is said to be the world's biggest source of lending, and it's used to establish business credit profiles. A business owner can start building a credit profile even before his company begins operation.

Difficulty: Moderate

Instructions

1. Get a federal tax identification number from the Internal Revenue Service to separate company transactions from personal ones and develop a business credit profile. If personal credit history is tied to business credit, it inhibits building a business credit score.

2. Consider establishing your business as a corporation or Limited Liability Company rather than as a sole proprietorship. This helps to separate your personal credit history from your business credit profile.

3. Register with business credit bureaus, and look for companies that will establish your business credit without using your personal credit profile. Large business credit bureaus include Dun & Bradstreet, Business Credit USA, Experian Business and Equifax Business.

4. Make sure any company that grants your business credit reports your payment history to business credit bureaus to establish your company's credit profile. Companies aren't required to provide such information; consequently, a business owner doesn't automatically establish a company credit profile as one does with personal credit history.

Tips & Warnings

• Request a copy of your company's profile from one of the large business credit bureaus. Check the profile regularly to look for errors, and don't hesitate to dispute incorrect information. The report includes a form to request an investigation of information that you dispute.

Resources

• See a sample business credit profile.