As a Michigan small business owner, establishing strong business credit should be a top priority. Good business credit opens up funding opportunities, provides flexibility, and enables you to grow on your terms. According to statistics from the SBA, only 0.01% of US businesses are classified as not being small in size. Here are tips to start building your business credit profile in Michigan.
Get a Business Credit Card
One of the easiest ways to begin establishing a credit file for your Michigan business is to apply for a business credit card. Make sure to find a card that reports to the business credit bureaus. Use the card regularly for purchases, but pay it off in full each month. Handling the card responsibly demonstrates your ability to manage credit wisely.
Open a Business Line of Credit
A business line of credit is another product that can help build your commercial credit, provided you make all payments on time. Flexible access to funds can be useful for managing cash flow, financing inventory, or funding operational expenses. As you borrow and repay over time, you’ll strengthen your credit standing.
Take Out Small Business Loans
Applying for and consistently repaying a term loan is powerful for building business credit history. Small business loans allow you to finance major purchases or investments in growth. Monthly payments for small business loans reported to commercial credit bureaus reflect positively over time. Even a microloan shows lenders you can handle credit obligations.
Check Your Business Credit Reports
Monitor your business credit reports regularly to ensure they accurately reflect your accounts and payment history. Having no files or errors can negatively impact your ability to get approved for new credit. If you find mistakes, work to have them corrected right away.
Actively using credit products tailored for business purposes is key to developing strong commercial credit in Michigan. Apply for a business credit card and/or line of credit, take out a small business loan, and routinely check your credit reports. With responsible borrowing and payments, you’ll be well on your way to establishing excellent business credit. If you’re looking to build business credit by taking out small business loans, or you have built your credit and need a loan, we are here to help. Reach out now to get started.