Business Credit File Registration

A crucial first step in building business credit

• Open a business credit file to begin building business credit
• Captures your payment history and trade references
• Your business will be more visible to lenders and credit grantors
• Makes it easier for your suppliers to open accounts for your business
• Establishes credibility
• An important key to any future financing needs

Register your credit file today to begin the important process of credit file aging. Without it, lenders may not be very interested to extend credit to your business.

Financing is an essential aspect for small business and an important consideration for the small business owner. One of the most important and critical elements to a small business is having the right financing in place at the time when it is needed. Last minute planning and being unprepared increases the possibility of being declined.It is important to begin building your company’s business credit before the need arises.

Many small business owners do not realize that companies, just like individuals, have credit files. Because they are not aware of this, building a proper business credit profile is not something that is paid attention to and usually winds up being unintentionally neglected.

When your company applies for financing, lenders and suppliers will look at your business credit profile to decide if they will extend credit to your company.

If your company does not have a business credit profile, chances are that:

• Your business will have difficulty obtaining credit
• Lenders or suppliers cannot evaluate the creditworthiness of your business
• Your application will be declined
• You will be required to provide a personal guarantee

If your company has a good business credit profile, it will be in a position to take on credit of its own.

A major step in establishing a good business credit file is getting your credit file registered. This is a “catch-22” situation because it is very hard to get your business credit file registered if your company does not have any credit and if your company does not have a credit file, it is very hard for it to obtain credit. What usually happens, is that the business owner gives a personal guarantee to obtain financing and that is when the credit building process begins.

Open your business credit profile as soon as possible so that the aging process begins. It is not only important to lenders that your business reaches a certain age but your credit file as well.