Whether you're a startup or a legacy brand, a good business credit score is crucial for securing the funding needed for growth. 

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Ok, but what is a business credit score? 

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Like a personal credit score, a business credit score reflects your creditworthiness based on your credit history and is built over time based on several factors. Essentially, it indicates the financial health of a company, its debt,  and informs lenders of the financial risk involved in lending to you and the likelihood of timely payments. 

Lower Costs: High business credit scores can result in lower insurance premiums and interest rates on loans and lines of credit. Good credit also opens up other, lower cost capital options like traditional bank loans or lines of credit.

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Accessibility: Business credit scores are accessible to vendors, lenders, and potential business partners, making your business more credible. The better your credit score, the more likely customers will want to work with you. 

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Negotiating Power: Good credit can help negotiate longer payment terms with vendors, aiding in cash flow management.

First and foremost, begin by checking if your business has an existing credit report. Unlike personal credit reports, business credit reports are not free, but can be purchased from major business credit bureaus like Dun & Bradstreet, Equifax, and Experian. These reports will give you insight into your business credit score and any existing credit activity.

If your business doesn't have any credit history, here are the steps to take to establish it:

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- Incorporate your business or form an LLC to separate your personal and business identities.

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- Obtain a federal Employer Identification Number (EIN) from the IRS.

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- Open a business bank account under your business's legal name.

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- Get a dedicated business phone line listed under your business name.

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- Register with Dun & Bradstreet to obtain a D-U-N-S number, which is used to track your business's credit.

The easiest and fastest way to start building your business credit profile is by opening a business credit card account. Before applying, ensure that the card issuer reports your payments to the business credit bureaus so your hard work and diligence is not wasted!