What is Business Credit?
Business credit works like personal credit but for your business. It helps you secure financing, establish vendor relationships, and separate personal and business finances. A strong business credit profile opens doors to favorable lending terms.
Building Business Credit
To start building business credit, you’ll need to establish a business entity (LLC, corporation) and open accounts in the business’s name. This way, the business will have its own credit history, separate from your personal credit.
Importance of Business Credit
A strong business credit score helps you secure loans, gain favorable terms from suppliers, and separate your personal finances from business operations. Without good business credit, obtaining financing becomes difficult.