Having a good credit rating is vital to the success of your business so you will want to start building it as soon as possible. Once you have a federal tax identification number you can apply for a D&B business credit rating file.
If you are just starting out, you might want to consider working with other businesses that consistently report payment histories to credit bureaus so that you can more effectively build up a good rating since reporting is voluntary.
Always pay your bills on time. A good portion of your credit rating is based upon how timely you repay creditors on THEIR timetable and terms, not yours.
While it is important for your business to have a good credit rating it is also crucial to check other businesses’ ratings before extending credit, especially for those with small businesses who cannot afford to not be paid for their goods and services.
Be aware that credit bureaus may also review your personal credit report, especially in the case of small and privately-held businesses. Be sure to keep personal finances in order or seek credit from those who will not refer to personal credit ratings.