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HOW DO I MANAGE BUSINESS CREDIT?
Whether you’re in the beginning stages of starting up your own business or looking to manage your current business’ credit more efficiently, it’s always important to stay on top of your finances. Better Business Bureau is advising business owners to follow a few simple steps to ensure the financial health of their business.
As your business starts to grow, it’s important to build a good credit record for your business that is separate from your personal credit record. Getting credit in your business’ name can help you qualify for lower rates on loans and leases, and can help protect your personal credit record which could suffer if you have too much business debt.
It’s never too early to start to establish a separate credit record for your business, even if your business is still in the very early stages. Keeping your business cards separate helps with record-keeping many card companies provide special spending reports that can tie in with your business book-keeping software and make it easier to keep track of your business expenses at tax time.
Business credit involves the strategic management of business charge and credit card services. Properly managed, these services can provide convenient access to working capital, robust online business tools and purchasing discounts that help to improve your businesses purchasing power, spending flexibility and expense control.
Always use the same business name, address and phone number from the beginning, so it will be easy for the credit reporting agencies to keep your records in one file. Consider incorporating to legally establish a business identity that is separate from your personal identity.
Open your first accounts. Get a separate checking account for your business. Also open an account with an office supply firm or other supplier that reports the transactions to business credit reporting agencies. Make small charges and pay them immediately before the invoice even arrives.