How to Establish Business Credit Without Personal Guarantee for a Small Business

Alliant Business Systems has developed a presentation on “How to Establish Business Credit Without Personal Guarantee.”

Knowing your business credit is the first step to building a strong financial future for your business. Your business credit can be as important as your personal credit. Creditors and suppliers are increasingly using business credit reports to make lending and credit decisions.

Establishing business credit may seem like a daunting process—especially if your business is new. But it’s not. Some things in business are easy. You know your product or service inside out and backwards. But when it comes to building your business credit, you — like countless other small business owners we’ve helped — you might be coming up a bit short. You’ll need a little time, a bit of patience, and a nudge in the right direction. Think of the steps below as your roadmap for establishing business credit.

 

Building Business Credit Tip: How Business Credit Scores are Calculated

Business credit scores range from 0 to 100, with 0 representing a high risk and 100 representing a low risk. Scores are based on a number of factors contained in your business credit file.

  • Number of trade experiences
  • Outstanding balances
  • Payment habits
  • Credit utilization
  • Trends over time
  • Public record recency, frequency and dollar amount
  • Demographics such as years on file, Standard Industrial Classification codes and business size