How to Get Approved for Business Credit: A Comprehensive Guide

Starting a business is an exciting venture, but it's also a challenging one, particularly when it comes to securing funding. Business credit is an important factor in obtaining the financing you need to launch your company or keep it running smoothly. In this post, we'll discuss the essential steps you need to take to get approved for business credit.

Step 1: Incorporate with the state and obtain an EIN number

To qualify for business credit cards, businesses must be incorporated with the state and have an EIN number with the IRS. Incorporating your business and obtaining an EIN is relatively straightforward and can be done online. Doing so provides a level of credibility to your business and separates your personal finances from your business finances.

Step 2: Assess your credit report

Before applying for business credit, it's important to assess your credit report. This will give you an idea of where you stand and whether you need to take steps to improve your credit score. Underwriters look for derogatory items, utilization percentage, the age of file reports, and inquiries. You can access a free credit report annually from the major credit bureaus - Equifax, Experian, and TransUnion.

Step 3: Consider lenders that won't report to personal credit

Some lenders offer lines of credit for businesses that won't report to personal credit. By using these lenders, you can build business credit without affecting your personal credit score. Consider lenders like Bank of America, U.S. Bank, American Express, American Airlines, Chase Inc, and Chase Preferred Business.

Step 4: Apply for business credit cards

Business credit cards typically require only good credit and offer no collateral and up to 18 months at zero percent interest rate. Applying for a business credit card can help you build your credit history and provide you with immediate financing. Be sure to read the fine print on interest rates and fees, as some cards have higher fees and interest rates than others.

Step 5: Build your business credit

Once you have obtained business credit, it's important to continue to build it. This can be done by paying your bills on time, keeping your credit utilization low, and diversifying your credit sources. Building your business credit can help you secure larger loans and lines of credit in the future.

Conclusion:

Getting approved for business credit is essential for any entrepreneur looking to launch or grow their business. By incorporating with the state, obtaining an EIN number, assessing your credit report, considering lenders that won't report to personal credit, and applying for business credit cards, you can establish credibility, protect personal assets, and increase funding opportunities. Remember to continue to build your business credit by being responsible with your credit and payments.

Invest in Yourself with Broker Solution's Career-Focused Courses

Are you ready to take control of your financial future? At Broker Solution, we offer three courses designed to help you achieve your goals. Our courses include the following:

• Broker Solutions Academy: In-depth training for those interested in becoming a business loan broker. We provide you with the tools and knowledge necessary to become a successful business loan broker, including access to industry professionals, comprehensive training materials, and ongoing support.
• Credit Consulting Academy: This comprehensive course is designed to teach you how to help yourself and others improve their credit scores. You'll learn how to analyze credit reports, identify areas for improvement, and implement strategies to help clients achieve their financial goals. In addition, you'll also learn how to fix your own credit and start your own credit consulting agency. This course provides you with the knowledge and tools necessary to help you achieve financial success while helping others do the same.
• Unsecured Business Lines Academy (DIY): This course is for those interested in securing unsecured business lines of credit on their own. You'll learn how to navigate the lending landscape and gain access to funding sources that can help you start or grow your business.

Our courses are designed to help you start a new career or improve your financial health. Join us and start building a better future. Contact Broker Solutions today!