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 One of the most common question that I get, which goes along the same lines of personal credit, is “how do I build my business credit?”  Business credit is a little trickier than personal credit as it tends to encompass more variables than its personal counterpart, but not to worry, business credit is easy to understand and almost as easy to build.
My business credit score is called a Paydex score (or, at least, the primary credit reporting bureau for business credit is Dun & Bradstreet, who are the issuers of the Paydex credit).  The Paydex score is a complex organism that encompasses several different credit variables.  These include profitability of  business, credit repayment, and longevity.  In order to build this credit, you will need to show extended periods of profitability, as well as a list of timely-paid merchant and business credit card accounts.  Basically, this score should show the lender that you are a viable candidate that will give them a very comfortable return on their investment in terms of interest.
Once one has learned how to build my business credit, all that is left to do is get the business process started so you can be up and running.  Getting squared away with business credit is a multi-step process  that requires the formation of a legal business entity, such as a C-corp or an LLC.  Once this is created you can go to the IRS for an EIN number, create a bank account and phone line for the business, and then send the information to Dun & Bradstreet, Experian, or one of the other major credit bureaus and get started the generation of business credit.
I am so glad that I learned how to build my business credit, as it has helped me immensely in my personal and business life!

This Business article was written by Mark Karavan on 3/29/2010