HOW TO ESTABLISH BUSINESS CREDIT

In addition to personal credit, creditors and suppliers are increasingly using business credit reports to make lending and credit decisions. That's why it's important to establish a separate credit report for your business.

If your business is new, or if you haven't yet established business credit, obtaining tradelines is a great way to begin building your business credit report.

How to ensure creditors and suppliers can validate your business information:

• Incorporate or form an LLC (Limited Liability Company) to ensure your company is seen as a separate business entity
• Obtain a federal Employer Identification Number
• Open business bank accounts in your legal business name
• Set up a dedicated business phone line in your business name and make sure it's listed

Establishing Business Credit

Once you've completed the steps above, you can request business credit in your company name. Your business trades then are reported to Experian, creating a robust business credit report that gives lenders and suppliers quality information about your company and boosts your ability to obtain loans, increase credit lines and earn more favorable credit terms.

Review your Experian business credit report today to see what lenders and suppliers see.