Why you should build your Business Profile

The #1 reason why businesses need a strong business profile is viability!  In other words it would be difficult for a business to survive without the capital and resources it needs to run its business successfully.  

The Basics of a Strong Business Profile

It is important to maintain a strong business  profile; it helps to establish credibility that is important to lenders, suppliers and other creditors.  A business  profile that includes multiple positive reports from banking institutions, vendors, utilities, and other operational accounts in your company's name provides evidence that your business pays its creditors on time.  By maintaining a separate profile from your personal profile can protect your personal credit in the event of a financial crises and it can help insulate your business from any adverse impact on your personal credit.

The Impact of Your Credit Report on Your Business Credit

Credit Bureaus collect credit data from a range of sources.  This information is used to create a profile that reveals how your business has historically met its financial obligations.  This picture then helps prospective creditors decide whether to extend credit to your company.  It is therefore critical that you pay your bills on time as a good business credit profile will get you access to the credit you need at very favorable terms.

What Does it Take to Build a Business Profile for a Start-up Company

  • Legally incorporate your business or form an LLC or Trust - You must have a separate entity to build a business  profile
  • Obtain an Employer Identification Number (EIN)
  • Open a Business Bank Account
  • Obtain a D-U-N-S Number - this is issued by Dunn & Bradstreet and is used to verify the history of companies' business credit transactions.
  • Compliance - You must obtain all necessary licenses or permits required to conduct business in your specific jurisdiction.
  • Obtain a separate phone line for you business that is listed in your company name.
  • You must have a business address that is used for all of your business
    affiliations.
  • Apply for credit with companies that typically grant credit to new businesses and do not require any personal
    guarantee.
This is the essence and basics of establishing a business  profile.  While business owners can do it themselves, they do so without the wealth of knowledge that business experts have at their disposal. 

When GL Capital Trust ​engages in the process of building a  profile for a client, not only does the client get the benefit of the process, they are also educated about the nuts and bolts  of Business  and the pitfalls that happen throughout the process.