Build Credit For Your Small Business. Credit Defined. When someone lends you money, and you pay them back with interest, they have “extended you credit.” Credit is the ability to borrow money and manage it responsibly. Buy now, pay tomorrow. Why is it good for my small business?.
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Credit helps a business:
Your credit history is a record of how you have paid your credit card debt and other loans in the past.
Why do lenders want to know how you have paid your debts in the past?
Because they assume you are likely to behave in the future in a similar way to how you have behaved in the past. If you paid your debts well in the past, you will also pay well in the future!
In sum, your credit history is like a report card on how you use credit.
The better your credit history, the better chances of getting credit with lower interest rates to finance your business!
The three biggest credit reporting agencies that keep records of your credit history (your credit report) are:
Each year you can request 1 free credit report from each agency at:
or by phone at 1-877-322-8228
You will need to pay a nominal fee for each additional report or to see your score.
Your credit history is reviewed by many different groups to evaluate your financial behavior. Among those who will check your credit history are:
Besides the cost to your business, there are other personal costs of not having credit:
Credit reports include:
Credit reports do not include:
* If you DON’T PAY your medical bills, medical collections do appear on your report!
Types of Credit Used
Length of Credit HistoryWhat is a Credit Score?
Apply for an installment loan with AUSA today and strengthen your credit history!
Just as each individual has a credit report, so does a business.
Corporations can have a business credit report, mostly through Dun & Bradstreet, which is the main business “credit bureau”.
However, if you are starting a small business, you are more likely to start off as a sole proprietor (not a corporation).
You need not be concerned about building business credit to sustain your business on your personal credit until your business is solidly established and has over 9 employees.
If you would like more information,
please contact us at:
(312) 275-3000 or