Business owners believing it’s too difficult to build company credit on a shoestring budget are in for a pleasant surprise after reading this post. Every business regardless of how small the amount of money it can spend has mandatory expenses it cannot avoid.
These expenses in my book are opportunities for you to build business credit history. No matter what amount of money you’re spending right now to operate and grow your business you can benefit by having it reported on your company’s corporate credit file.
Here is a sample list of the typical expenses every business incurs that can be used to build business credit history:
- Website development – some companies in the marketplace that develop web sites not only extend credit to start ups but also report your payment experience to the business credit bureaus. If you already have a working web site then make a note of the company that you paid to build it for you.
- Internet services – are you paying a web hosting fee? If so why not have the monthly fee reported to your file? Are there companies that report web hosting fees to the bureaus? You bet!
- Phone services – another expense that is so widely overlooked that your company should get credit for on its report.
- Office supplies – many office supply companies offer vendor credit lines that you can use to purchase supplies your company needs. This is not only a great way to fund your short term needs but also an easy business credit builder.
- Postage/Shipping – instead of going to the post office and using cash to ship products, letters or materials why not use a shipping company that reports your payment history.
- Marketing – if you are using a printing company to create your brochures, business cards and marketing materials why isn’t your payment experiences with them being reported on your corporate credit file?
These are just a few of the items I review with my clients in my business credit practice. One of my members who own a home based business marketing children’s books had over twelve positive payment experiences added to her file after we did this exercise. Within two weeks after her profile was updated we got her approved for a $7,500 credit line with a marketing company which she is now using to expand her advertising reach.
It was much easier for her to get those items listed because she enrolled in the duns credit builder program offered at Dun & Bradstreet. This would be a good option if you already have companies that you work with that do not report to the bureaus. But if you’re just getting started then it makes sense to use companies that report so you don’t have to go through the additional work.
You may want to consider joining the Business Credit Insiders Circle because it provides you with the companies that offer these services like web hosting, web development, marketing, office supplies and many more that all report to the business credit bureaus.
As you can see this is simply a business credit building strategy that takes what you are already spending to operate and grow your business and have it reported on your company’s credit file. When you showcase your company’s ability to manage its finances on its corporate credit file you can greatly increase the ability for your business to access the cash, credit and financing it may need in the near future.
To your business credit success!
Marco is founder of the Business Credit Insiders Circle which helps small business owners in building business credit.
You may contact Marco directly at: firstname.lastname@example.org