How to Build Business Credit in 2020

Business credit building in 2020

How to Build Business Credit
Once you have established business credit, your next step is to build strong business credit. Many of the steps above will help you do just that, but it’s important to focus on two specific steps to help you boost your commercial credit history.

The first step is to pay bills early. In the advice above, we mentioned how it’s important to pay on time. But with some business credit scores, you can, in essence, get “extra credit” for paying your bills before they are due. Payment information on your business credit report is often more detailed than on your personal credit report. Pay faster if you can, and you may build your business credit score more quickly.

The second piece of advice for building good business credit is to make sure you have accounts reporting to the various business credit agencies. Again, not all vendors and creditors report to all commercial credit agencies. For example, your business credit card issuer may report to SBFE but not to D&B; you won’t know until you check your reports.

So be sure to check your credit reports and scores with more than one major credit reporting agency to find out whether your accounts are helping your scores, and if not, consider adding additional credit references. With Nav’s Business Loan Builder subscription, you’ll see your business Experian Intelliscore, D&B Paydex Score, and your FICO SBSS score.

Also, keep an eye on your credit utilization. Some lenders want to see less than 30% of your total available credit used before they approve you for additional financing. Keep an eye on your credit limit across all credit cards, and make sure you’re using 30% or less of what you have access to to increase your chances of getting approved for a business loan.