Before you open your business you can start to build your business credit profile. The first step in doing so is to establish the business as a separate entity, to be sure that your personal credit profile is separated from your business credit profile. This simply means that you want your business to be structured as a corporation.

The second step in this process is to make sure that you make a business plan, which includes all details and all financial information. You need to be prepared to defend your business plan by showing how the plan was developed and by showing how the figures were estimated. You will also need to have all permits or licenses to start and run your business. Your goal should be to establish a business with all the necessary details in place.

You need to also find out what the requirements are for the lenders and credit bureaus. By doing this, you will know what standards are expected before you start to build your business credit profile.

The last step is to make the initial purchases needed for your business. This is where you will either need to invest in the business, or have somebody who you know will. Then that money should be used for purchases from vendors who will:

* Report your transactions to the credit bureaus;

* Let you establish credit based on your personal credit scores.

This is where your business plan can be beneficial to you, especially if the plan has attracted investors with good business credentials. Having financial backing from one good investor can attract others as well. In this case, having a good backing system can inspire vendors to grant you a line of credit and also motivate them to believe in the success of your business. If the vendors do grant you the credit, then you have to make payments on time and make sure that they are reported to the credit bureaus.

Another way you could get your business credit profile started is by getting loans from state or national business associations. Making payments on time can also help you to establish your business credit profile.

Other methods are simple if you want to improve or build your credit profile. For small businesses, the guidelines are not so different from those for improving your personal credit scores. You will want to:

* Pay within the preset terms;

* Work with suppliers who report your transactions;

* Limit the amount of inquiries regarding your profile;

* Limit the amount of business credit cards, a couple will do;

* Don't let your registrations or licenses lapse. Be sure that you renew them on time, or obtain new licenses or registrations that you need;

* Keep an up-to-date financial record.

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