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Business Credit

WHAT IS BUSINESS CREDIT?

Business credit is having a credit under a legal business entity, such as a corporation or limited liability company. The business credit profile is much like a personal credit profile; however, the business uses a TAX ID number like that of an individual’s SSN.

 
 

Why do I need Credit?
Business credit is grown in a similar fashion and credit is scored on your credit accounts, payment activity and the overall credit worthiness of your business. scoring systems and ratings are provided by credit reporting bureaus such as Experian and Equifax as well as Dun and Bradstreet and follow similar principles as personal credit scoring. Although the business credit scoring has different ratings and scales, the fundamentals are the same; having a solid business entity that is well organized and established, creditors reporting positive payment activity and lenders reporting to the bureaus regularly will grow your company’s credit profile.

Establishing a good credit rating is an important financial priority for every business. Having good business credit means that owners of businesses can seek alternative financing for essential needs without having to extend their personal credit.

At some point in every business, owners will require financing. Some businesses require working capital loans. Some need to establish financing to build their businesses by financing their accounts receivables, restocking inventory, or investing in much needed capital equipment. Others may want to save money by taking advantage of trade discounts or purchase office supplies in bulk and unfortunately, the reality is that many businesses find themselves in situations where they need to utilize financing to make emergency repairs or pay for outstanding taxes and assessments.

What documents will I need to apply?

  • Copy of driver’s license for each owner with a 20% or greater ownership.
  • Articles of Incorporation, Partnership Agreement, Corporate Resolution, or Authority to Transact Business documenting authorization to borrow in the name of the applicant.
  • For Start-ups: A business plan to include a discussion of the company
  • DD 214; DD 2648-1; DD Form 2

 

Please complete our Business Credit Pre-Qualification Assessment questionnaire: