Business Credit Building Process -- Reader Question

Here is a question from a prospective BusinessCreditSuccess.com member:

1:What is the ideal number of business credit cards to apply for at level 2?

2:How much corporate credit can I realistically expect to build over a 1 to 2 year time frame?

Answers:

Thanks for the great questions! First, many of the business credit cards don't report to the business credit reporting agencies such as Experian and D&B. If they don't report, they don't benefit your business credit rating. Just as with personal credit, you'll want to build a mix of credit references that report in order to build a solid business credit rating. These may include vendors, specialty cards (office supply or gasoline cards etc.) as well as a business card that does report.

Secondly, there are no magic numbers in this process. Every lender is different, and the amount of credit you will get depends on your business track record, credit history, the industry you are in, as well as your personal credit score. For a business that is only one to two years old, you can expect to have your personal credit reviewed for most loans. However, you may easily be able to get trade credit in the name of your business, and the less business debt that appears on your personal credit report, the better.

Building business credit is a process that occurs over time and the sooner you get started the better!