The Best Method for Applying for Business Credit

there are many ways to apply for business credit

Businesses that are starting up may need to apply for credit to purchase merchandise. Even businesses that have been operating for quite some time may need credit to purchase more equipment or inventory for expansion. There are different methods that can be used to apply for business credit, depending on your needs. Having personal information as well as information about your business will help determine the best method to apply for credit.

Instructions

1. Calculate how much credit you need for your business. It is sometimes easier to obtain business credit for a smaller rather than a larger amount. Determine the specific amount you need for your business so you will be able to maximize your chances of approval.

2. Obtain a D-U-N-S number. Dun and Bradstreet is the credit bureau for businesses. They issue a D-U-N-S number which is used to record your business credit from companies that report each month. A D-U-N-S number is the best method for obtaining business credit because you may not have to use your personal credit for approval. You can apply for D-U-N-S number by going to Dun and Bradstreet website or contacting a customer service rep over the phone.

3. Apply for an EIN number if you have not done so already. Your employer identification number is also used to determine credit approval. Your EIN number can be obtained by going to the IRS website or you can contact the IRS directly at 1-800-829-1040. There is no cost for an EIN number. An EIN number is also the best method for business credit because the EIN can be used for approval instead of your personal Social Security number.

4. Apply for business credit over the phone. Applying for business credit over the phone is usually the best method for applying for business credit because often times the customer service agent can override the system for an approval. They may also give you other resources and ideas to influence the underwriting department for approval.

References

• Dun and Bradstreet: D-U-N-S number

Resources

• IRS: Employer ID numbers