Things You'll Need:
- Tax ID number
- Credit report
- Business loan
- Business credit card
- Collateral
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Step 1
Register your business name and get a business license. Visit your local city hall and apply for a business license. Check the business registrar to register your business name.
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Step 2
Request a business tax ID number. To apply for credit in your business name, your business will need to have its own identity. Request an Employer Identification Number from the IRS.
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Step 3
Improve your personal credit score. While your objective is to obtain a credit rating for your business, lenders will initially use your personal credit score to determine whether you qualify for business credit. Once your business establishes a credit history, you can apply for new accounts in your business name. In the meantime, maintain a good credit history. Reduce your debts and pay your bills on time.
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Step 4
Open a business bank account. When applying for business credit, lenders will inquire about a business bank account. Visit your local bank or credit union and open an account. You can usually open an account with as little as $50.
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Step 5
Get a secured business credit card. After opening a bank account, talk to an account representative about a business credit card. Secured accounts are easier to obtain. However, they require a security deposit.
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Step 6
Apply for a small business loan. If you need start-up capital for your business, apply for a small loan in your business name. Because your business doesn't have a long credit history, you'll need collateral or security. This can include any valuable piece of personal property such as car title.
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Step 7
Practice good credit history. Obtaining new lines of credit for your business is only the first step. To build and maintain a good credit rating for your business, keep your debts low and pay your creditors on-time.
