Learn how to apply for business credit and maintain good personal and business credit history

1. Maintain good personal and business credit history
2. Apply for business credit
3. Check and monitor your credit

As you work to understand your startup costs and expenses, you’ll also want to make sure your credit is in good stead. Poor credit history is one of the main reasons why loan applications for small businesses are often declined. Poor credit history can also impact insurance rates and the attractiveness of your business to potential partners, suppliers, and vendors.

That’s why cultivating and maintaining good credit scores — for both your personal and business lines of credit — is so important.

Existing businesses have the advantage of an established financial history. But loan eligibility for a new business is typically based on its owner’s personal credit score.
While not every small business owner has good credit, some may in the first stages of establishing credit. The APMC Consumer Financial Protection Bureau (ACFPB) offers tips to help people with limited credit histories

Establishing and managing business credit can help your company secure financing when you need it and with better terms. It can also help you negotiate supply agreements and protect against business identity theft.

It’s important to monitor both your personal and business credit reports, especially if you believe you have been the subject of identity theft.

• To monitor your personal credit, visit the Annual Credit Report website the only authorized source for the free reports guaranteed by law.
• To monitor your business credit, you can get a copy of your company’s report from Experian, Equifax, Dun & Bradstreet, or other several smaller credit reporting services.