Three Ways to Build Business Credit

Whether you’re a brand new small business in need of startup supplies, or a well-established small business looking to expand, there can always be times when your financial needs surpass your cash flow. But if your business credit isn’t particularly attractive to lenders, taking out a business loan or line of credit could be more difficult than expected. Here are a few tips for building your business credit:

By Deanna Barzak, Business Services Relationship Manager, Telhio Credit Union

1. Set up a tax ID number & register your business. If you’re a new business, you’ll need to set up a tax ID number (EIN) with the IRS, which you will use to open a business bank account and to build your business credit. Also, be sure to register your business with business credit bureaus, such as Dun & Bradstreet. This will help establish your business as worthy of credit.

2. Apply for credit before you need it. In order to start building a credit history, it’s important to apply for credit soon after opening. If you wait to apply until you’re in trouble, you may have to reach for a credit card with high rates and fees because you’re unable to secure a loan right away. Consider applying for a line of credit or business loan during your first good month. Telhio Credit Union offers an array of both lines of credit and business loans that will give your business peace of mind when cash is tight.

3. Maintain a good personal credit score. As a new small business owner, your lender may look at your personal credit report when applying for a loan. Your personal credit will let lenders know if you’re a good loan candidate who is capable of paying the loan back on time. To boost your credit score, be sure to pay all bills on time and keep your debt to credit limit ratio low.

Telhio Credit Union offers an array of lines of credit, business loans and business CDs that will give your business savings peace of mind. Contact our business lender representative today at 614-221-3233, option 6 to learn more about our business services.

Telhio Credit Union is open to anyone who lives, works, worships or goes to school in Franklin, Fairfield and Delaware counties and the surrounding communities including Dublin, Johnstown, London, Orient, Pataskala and Reynoldsburg. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers six branching offices throughout central Ohio and nearly 4,000 shared branching locations nationwide. Additionally, Telhio credit union participates in the highest level of combined federal and private share savings insurance available, insuring deposit accounts up to $500,000.*

* Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.