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For your new business, one of the most important things to know is how to get business credit. Business credit works a little differently from personal credit, and it is important to know the differences; although it is more complicated, business credit can provide you with a much larger amount of credit than you would otherwise have had access to.

Business credit is based on a scale of 0 to 100, with 75 being considered excellent. The most commonly understood form of business credit is the Paydex score, which is issued by Dun & Bradsteet. Business credit factors in a few more variables than personal credit; rather than merely being about whether you pay your bills on time, business credit is based on the profitability and stability of your business.

Ok, so now that you know what it takes to build it, you need to know how to get business credit in the first place. Because business credit is attached to a business entity rather than an individual, it requires the formation of either a C-corp or a Limited Liability Company, each of which have their own strengths and weaknesses. In place of a social security number, the business will be assigned an Employer Identification Number, and will require a dedicated phone line and bank account. The business will have to be registered with Dun & Bradstreet, where it will be given a profile and an account, at which point your credit building will begin.

Once you have this under your belt, you will want to know how to get business credit cards as well. Credit cards are an excellent way to begin building business credit; they provide you with immediate financing for things that you need and help increase your Paydex score. The best way to do this initially is with a collateral account for a secured credit card. This means that you will have to have a certain amount of money kept in a savings account in order to secure the credit card. Business credit card lenders tend to be tight to first time applicants, so this is an excellent way to break into the system.

This Business article was written by Mark Karavan on 1/15/2010