Foundations of Business Credit [2018 Guide]

Everyone wants to build a successful business

The most important thing, however, is to make sure that the business is financially viable.

How does someone who has no financial activity or business assets go into strengthening a business so that it qualifies for funding time and time again?

Simple:

Establish Corporate Credit and continue to run the business until it establishes a maturity stage to attract larger capital.

Of course, with that said there are so many elements to building business credit that it can all be a bit overwhelming

That is why I've prepared this basic guide to help you go through establishing the foundation - where you will then be able to build on to integrate corporate credit strategies.

First thing's first, you would want to start by incorporating your business

To do this you can simply head over to the Secretary of State of your home territory and go in the business section.

Once there, you want to find out if the name you're attempting to register your business it is already taken. To do this, simply do a business search with the name of the business that you want to register. If you see that it's already been taken, figure out another name and continue the process until you're good to go.

This may sound very basic, but believe me when I tell you the number of times a client's registration gets denied due to a name issue. 

After you have successfully registered your business, the next step would be to open a business checking account. The suggestion here is that you go for a major financial institution. The reason why you would want to do that is that you want to have access to quick, efficient and top-level banking resources as you're building your corporate credit.

I recommend any account from the following list:

  • U.S Bank
  • Bank of America
  • Wells Fargo
  • Chase
  • Citibank
  • TD Bank

Of course, there may be other institutions that I have not mentioned on the list, but those are usually the ones that I tell my clients to register their accounts in.  (please note that I am not paid to endorse any of these financial institutions, they are simply my top choices and recommendations)

By this stage, you're ready to move on to the next stage in your corporate credit journey.

It's time to set up a website and create your brand elements

When it comes to setting up a website, I highly recommend you head over to Web 247 Solutions. It's my business and digital solutions company, where I work with my partner Neha Patel to create strategic web solutions for clients who are looking for specific custom outcomes.

In this case, our goal would be to set up a website quickly, efficiently and effortlessly for you.

And, if you're planning on doing it on your own, I suggest that you first register your domain and then register your hosting plan.

Upon completing that, I strongly suggest that you create a WordPress website. The reason why WordPress works so well is due to the fact that it's highly customizable and can offer you a great deal of flexibility.

At this stage, you should be ready to move on to your next corporate credit stage.

Time to build more Credibility with a 1-800 Number, Voicemail and a Fax Line

To get a 1-800 number, you can head over to Call Fire. They are very good and budget friendly.

Not only will a 1-800 number give you a more professional appeal but it will also add credibility to your business profile.

You always want to make sure that you add a professional voicemail. There are hundreds of professional voiceovers that can do this for you. Head over to Fiverr to choose which would best your brand and make the arrangements to get it done.

Alternatively, you can always record a professional voiceover yourself. Just make sure that it is unique and that you mention your business name properly.

Once you have that recorded and made, you want to upload that to your call fire account and you should be good to go from there.

And, this brings us to our final point. It's important to have a fax line when building business credit. Unfortunately, a lot of vendors are stuck with faxing back and forth applications since they have not integrated cloud-based solutions as of yet.

You can get a fax line by going to E-Fax and registering an account. Alternatively, you can also check out onesuite fax services. Both offer budget-friendly packages and don't cost much to operate.

There you have it, your foundation should now be set up and you can finally start applying with vendor accounts to start building your business credit.

In Conclusion

Remember that building corporate credit takes time. You won't be able to accomplish it overnight. Especially if you're thinking of attracting long-term larger amount of capital down the road.

Also, please note that you will definitely need a budget to start working on the vendor accounts and other creditors as you're building business credit. Anticpate spending around $1,800 to $2,500 total.

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