| No business person starts a new venture with all | | | | history periodically and verify that all the facts |
| the needed funds. Though the promoter is | | | | entered are correct. In case of errors, provide |
| expected to put in the seed capital, they are sure | | | | documentary proof and get your records |
| to have planned on obtaining credit for use as | | | | corrected. |
| working capital, for expansion, and for | | | | A good business plan is also vital for business |
| diversification. However, creditors are wary of | | | | credit success. Bankers and other creditors such |
| lending to startups. To qualify for credit, you need | | | | as venture capitalists and angel investors will go |
| to build business credit as soon as possible. For | | | | through your business plan with a fine-tooth comb |
| this you need to meet certain criteria. Some of | | | | to look for loopholes. Once you document your |
| these are fairly easy, but show the potential | | | | business plan, attach documents that will support |
| creditor that you are serious about the business | | | | your projections for both expenses and income. |
| venture. | | | | Make sure that your projected figures are in |
| In order to establish your business credit profile, | | | | accordance with industry data or that you are |
| you need to register your business with the local | | | | able to defend your variations. |
| authorities. Obtain all the required permits and | | | | To build corporate credit, you also need to |
| licenses to run your business. Another fairly easy | | | | establish the business identity of your startup. To |
| step is to get a business telephone number and a | | | | this end you need to incorporate your venture, |
| yellow pages listing for your venture. Banks and | | | | making it a limited company. This is advantageous |
| other financial institutions do check for these | | | | as your personal credit rating will be protected |
| things as a matter of course. Even if you run | | | | from any downturn in the business. A second |
| your business from home, ensure that the | | | | advantage is that your credit history need not be |
| business telephone number is distinct. These | | | | great for your business to be sanctioned a loan. |
| simple steps will help you build business credit. | | | | Your business will, instead, be evaluated on its |
| In order to establish business credit, first approach | | | | own merits. |
| a few vendors for credit for small sums. Be | | | | In the final analysis, in order to build business |
| absolutely prompt in your payment of these | | | | credit, you need to have a proper business plan |
| sums and ask your creditors to report your good | | | | and repay your debts on time. Though lenders |
| credit behavior to the business credit rating | | | | might initially base their lending decisions on factors |
| agencies - Dun & Bradstreet and Experian. When | | | | such as the availability of permits and licenses, |
| other potential creditors see your positive credit | | | | they will part with greater sums of money only |
| history, they will be more willing to offer you're a | | | | after you demonstrate your ability to repay small |
| larger credit line. To ensure that your credit | | | | sums on time. |
| history is positive, ask for reports of your credit | | | | |