Updated: Jan 26
Those who know credit will tell you, the best time to build business credit is while you are building your business!
Credit recommendations are based upon a variety of factors, one of which is the age of your company. But the age does not have to define your future credit approvals. Younger businesses have a substantially higher risk for failure simply due to the foolish mistakes all new companies make during their initial experiences. There may be ignorance in youth, but those who learn from their lessons will have a higher rate of success, growth, and credibility.
Building your business credit profile is much like building a house. Oftentimes, more time and money are spent on buying land, approving plans, purchasing permits, lining up contractors, and ordering materials than is actually spent on construction. There is much background work to be done before the first shovelful of dirt can be raised. It can be a grueling process that requires much time and perseverance, but by the time everyone sits down for the first dinner in the completed house, you have long since forgotten those first challenges were forced to endure.
You should never, however, lose a minute of sleep knowing you may have skipped some of the necessary steps in building the foundation that is expected to protect your family into the future.
The foundation of your business credit profile is equally important and requires focus and insight when preparing to support your company’s growth into the future. It is common knowledge that creditors assign risk val