Elevate Your Brand with Strong Business Credit

Hey there, T-Shirt Millionaires! It's "Tee" Rex here, and today we're gonna talk about one of the most crucial steps for small shirtpreneurs: building a solid business credit profile.

As a "business owner", you know that launching a successful t-shirt brand requires more than just an eye for design and a passion for fashion. It takes financial support to scale your business, and that's where business credit comes in.

Having a strong business credit profile opens doors to financing opportunities and establishes relationships with suppliers, lenders, and vendors. This makes it easier for you to access the resources you need to run and grow your business.

And the good news is, taking the first step in building your business credit profile is a no-brainer! You can sign up for Nav.com, a platform that helps you monitor and improve your business credit score, for free - with no credit card required.

So if you're ready to take your t-shirt brand to the next level, let's get started by building your business credit profile.

When you apply for future business credit, potential creditors and lenders will view the report to determine your company’s creditworthiness. They will use the information to evaluate how well your business repays its debts, and negative marks can cause you not to get approved, or lower the amount of credit they will extend, or limit the terms under which that credit will be given.

Besides lenders and creditors, several other parties may be interested in reviewing a business credit report. Business insurance companies, for example, assess a business’s report as part of the underwriting process. Customers and other businesses that are being considered for a joint venture or partnership may also review your company’s credit history before working with your business.

7 SIMPLE STEPS TO ESTABLISHING BUSINESS CREDIT

Here's what you need to know:

• Just like your personal credit report, there's a business credit report that tracks your payment history and creditworthiness.

• Your business credit score can impact your ability to secure loans, lines of credit, partnerships, and more.

• To establish a credit score, you need to do business with companies that report payment history to credit bureaus, pay everything on time, and monitor your credit regularly.

Here are the seven simple steps to establishing a business credit score:

1. Establish your business as a legitimate company.

2. Register with the government and the IRS.

3. Get a D-U-N-S number from Dun & Bradstreet.

4. Set up accounts that report to business credit bureaus.

5. Open a business credit card.

6. Pay everything on time.

7. Monitor your credit through a service like Nav

So, what's an acceptable business credit score? It depends on who's looking at it and for what purpose. However, a score of 76 or higher for Experian. The Dun & Bradstreet PAYDEX score ranges from one to 100 and is generated based on your business’s financial information, especially payment history. A good score is considered anything at 80 or above and indicates that you’re likely to make payments on time. 

WHY IT'S AWESOME TO SEPARATE PERSONAL & BUSINESS

It's important to keep your business and personal finances separate, especially when it comes to credit. Luckily, trade credit reporting can help you do just that! By providing a clear picture of your business's financial health, including credit inquiries, lines of credit, and delinquencies, a business credit report makes fraud monitoring and credit assessments a breeze (check out how crucial business credit monitoring is!).

But wait, there's more! By keeping your business credit separate, you can also protect your personal credit score. Since businesses typically have more inquiries and larger lines of credit, combining the two can hurt your personal credit. But with a trade credit report, your business gets its own credit history to showcase its financial activity. How cool is that?

GET A FREE NAV ACCOUNT TODAY!

To check your business credit score for free, you can visit the websites for Dun & Bradstreet, Equifax, and Experian, or use a service like Nav. Nav offers other resources for your business based on real data, like a Cash Flow Tool and a list of loans and credit options you're most likely to qualify for.

Don't wait to start building your business credit score. Sign up for Nav today and take your brand to the next level!