Establishing Your Business Credit Without Risking Personal Scores

If you are looking to establish business credit, keep in mind that many creditors require a personal guarantee from the owner of a new, or not yet well established, small business. However, there are a few credit options available that allow you to apply for business credit, without a personal guarantee.

Establishing Your Business Credit

To find credit lines for your small business without a personal guarantee, you have to look in the right places. In the beginning your options are severely limited, but you can usually get small credit lines with companies like NEBS or Viking for office supplies. Shipping services are also offered by companies like UPS and FedEx. They are excellent credit builders for your business credit rating. Keep in mind that they do report to the business credit reporting agencies of Dun and Bradstreet and Equifax Small Business services, and therefore you will be required to keep track of your business dealing separately.

After you establish smaller lines of credit, you will be able to move on to revolving charge accounts and even small business credit cards from some banks. You can’t build your business credit profile overnight, but with some patience and a good payment history, it can be achieved.