Building Your Business Credit Faster with Virtual Assistants

Apr 28, 2022

How to build business credit fast

A credit score is often the most important indicator of how risky it is to work with an individual or a business. As an important part of one’s financial health, building a good credit score is always a priority for people and companies alike.

Because it is our mission to help businesses grow in every possible way, this article is to help entrepreneurs figure out how to build business credit fast.

Why Business Credit Matters

Maintaining good business credit is important in growing businesses. It helps gain access to growth funding and builds a strong reputation among potential creditors.

A healthy credit score increases the chances of getting approved for business loans, as well as getting good interest rates from lenders.

This can be very useful when looking for financing opportunities or investors as you scale your business.

How to Build Business Credit Fast

To build your business credit fast, you need to start by establishing your company’s finances as a separate line of credit from your personal one. Here are the steps on how to build your business credit fast.

First, you should establish a legal entity that can take attribution for your business’s finances. Registering your business as an LLC or a corporation protects your personal assets from being involved in any financial issues in the future.

This also gives creditors, lenders, and investors an entity to trust in having its own assets and managing its own finances with them.

2. Secure an EIN

Securing an EIN further establishes your business as a trusted entity in the eyes of the IRS. An Employee Identification Number (EIN) for your business serves as its unique identifier for tax purposes.

Your business’s EIN works like its own social security number. This will be used for opening bank accounts, and credit lines, and for lenders to confirm your creditworthiness.

3. Open a Business Bank Account

Separating your personal finances from that of your business requires that your company has its own bank account.

This is key to building a financial history that you can show to your creditors, other banks, lenders, and investors.

Choose a bank that can cater well to your business’s needs, and consider finding one familiar with businesses in your industry or area.

Consider starting a website and getting a business phone line, too, to appear even more trustworthy to your potential creditors and investors.

4. Establish Net 30 Accounts

Net 30 accounts are accounts you open with vendors, agreeing that you can pay them within 30 days after invoicing.

When looking for vendors, try to secure accounts with those who report to major business credit bureaus like Dun & Bradstreet, Equifax, and Experian.

These credit bureaus collect data from various sources to aggregate a report indicating your creditworthiness.

The 30-day period given by vendors helps in building your business credit by giving you positive assessments on payments earlier than their due dates.

5. Acquire a DUNS Number

A data universal numbering system (DUNS) number is used by Dun & Bradstreet for reporting your creditworthiness to the global business community.

Your DUNS number is not only required to get a publicly approved credit rating, but also for federal grants and cooperative agreements your business might need for faster growth.

You can get a DUNS number for your business through D&B’s toll-free number.

6. Get a Business Credit Card

Getting a credit card for your business transactions also helps in building your business credit faster. 

Using it for business transactions helps build a financial record of your money management, punctuality in payments, and how your business handles its assets and debts.

Good management of your business credit card bills reflects not only on your record but also in your business credit report. Just make sure your credit card provider also reports to business credit bureaus.

7. Monitor Your Credit Lines

As you start establishing multiple credit lines with net-30 accounts, business credit cards, bank loans, and more, you have to take on the responsibility of monitoring your payments and making sure you’re always at least punctual.

The financial habit you develop in your credit utilization will reflect on your credit history and overall credit rating.

Monitoring your credit lines also involves searching for opportunities to find more agencies that can help you build your business credit fast.

8. Grow Your Business Credit Score

Continuing the growth of your business credit score involves regular checking on your actual rating and finding out how to build your business credit faster.

You can do this by asking your banks for bigger loans, or requesting higher credit limits from your credit card providers and vendors.

You may also apply for federal grants to fund your business and increase activity, including credit utilization. As you do all of these, make sure you’re constantly monitoring your credit lines and maintaining timely payments.

how to build business credit fast with virtual assistants usa

Leveraging Virtual Assistants to Build Business Credit

Virtual assistants are known for helping out in routine tasks for business operations. However, their skills can also be leveraged for specialized work, especially in carrying out small projects.

You can have your virtual assistant handle the process of incorporating your business into a separate legal entity, avoiding the paperwork that comes with the process.

The same goes for opening bank accounts and securing EIN and DUNS numbers. Furthermore, they can help you find vendors, creditors, credit card providers, and banks that will help you grow your business and business credit faster.

From there, they can be the ones in charge of monitoring your credit lines, managing debts, and continuing the search for agencies that can help you out.

Hiring a virtual assistant can speed up the entire process of establishing your business credit lines, and growing your credit score.

Build your business credit faster with the help of a Virtudesk virtual assistant. Just fill out this form and one of our Consultants will get in touch with you about our services.

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