Just like your personal credit score, you may be facing similar pressure to build a strong business credit score. Continue reading to discover the best practices for establishing a good business credit rating and how one of the experienced Certified Public Accountants & Consultants at Werdann DeVito LLC can offer our accounting and integrated services to help you accomplish this goal.
What are some of the benefits of a good business credit rating?
You can reap the benefits of building a good credit rating for your business. Specifically, if you achieve this, you may be able to avoid prepayment for materials and services. Or, you can place your business in a better position to negotiate with suppliers and qualify your business for better interest rates and credit terms, among other perks.
What are some helpful tips to establish a good business credit rating?
Although the benefits that come with your personal and business credit rating may be similar, different algorithms come into play when determining your business’ credit rating. With that being said, if you would like to establish a good credit rating for your business, it is in your best interest to follow the below tips:
- Obtain a business phone number and have it listed in directory assistance.
- Obtain an employer identification number for tax reporting purposes.
- Pay your bills on time, all the time.
- Separate your business and personal expenses by opening more credit cards, lines of credit, and/or bank accounts in your business’s legal name. This will also make managing your taxes easier.
- Obtain a corporation or an LLC that will separate your business and personal credit profiles and financials. Without doing so, your business and personal credit history will be legally attached and your personal assets could be at risk if you are sued.
- Secure payment terms, like net-60 or net-90, with vendors and/or suppliers that report those payments to business credit reporting agencies.
- Keep track of your credit to avoid having errors show up on your credit reports. If you happen to find an error, you will be able to act fast and file a dispute with the reporting agency before it is too late.
If you require assistance with achieving any of the above tasks, do not hesitate in reaching out to one of our certified public accountants and consultants as soon as possible.
Contact our experienced New Jersey firm
Werdann DeVito LLC is an experienced Certified Public Accountant firm serving clients throughout New Jersey with all of their financial needs. If you need quality assistance with accounting, tax, or consulting services, contact Werdann DeVito LLC today.