How To Build Business Credit For LLC

Have you ever felt limited by the lack of funding for your LLC? You’re not alone. Many business owners struggle to secure financing, especially when their LLC is brand new. But what if I told you there’s a way to unlock a treasure trove of funding opportunities specifically designed for LLCs? This guide will show you exactly how to build business credit and open the door to the funding your business needs to reach new heights.

Why Business Credit Matters

Traditional lenders rely heavily on personal credit scores when evaluating loan applications. However, a new LLC doesn’t have a credit history. This is where business credit steps in. Building strong business credit establishes your LLC’s financial trustworthiness, making it easier to qualify for loans, lines of credit, and other forms of financing.

Building Business Credit: A Step-by-Step Guide

Here’s a roadmap to building solid business credit for your LLC:

  1. Ensure Your Business is Registered and Active: A good first step is verifying your LLC’s active status with your Secretary of State. An inactive business won’t be able to build credit.
  2. Obtain an Employer Identification Number (EIN): An EIN is your business’s social security number, essential for filing taxes and establishing credit. You can obtain an EIN for free from the IRS.
  3. Establish a Professional Presence: Create a professional email address with your LLC’s domain name, set up a business website, and acquire a business phone number. These elements portray a legitimate and established business image.
  4. Claim Your Dun & Bradstreet Profile: Dun & Bradstreet is a major business credit bureau. Claiming your profile allows you to monitor and manage your business credit report.
  5. Build Trade Lines: Trade lines are records of your business paying suppliers or vendors on time. Partner with vendors who report to business credit bureaus and make consistent, on-time payments to build a positive credit history.


Fast Track Your Funding with Established Lenders

While building business credit takes time, there are lenders that cater to new LLCs with limited credit history. Here are five banks known for offering financing to new LLCs with stated income:

  • Chase Bank: Open a business checking account and inquire about their business credit card or line of credit options. They often work with stated income.
  • Bank of America: Similar to Chase, Bank of America offers business loans, lines of credit, and credit cards based on projected income.
  • PNC Bank: In select states, PNC Bank offers stated income loans, lines of credit, and credit cards for businesses.
  • Truist Bank: Truist Bank provides business checking accounts, credit cards, and lines of credit, often with stated income approval.
  • Regions Bank: While they may have a two-year business operation requirement in some cases, Regions Bank offers business credit card and line of credit options with stated income.


Unleash Your Business Potential with Additional Funding Resources

Building business credit and securing funding from established lenders is a powerful strategy. But there’s more! Partner with a funding specialist like Big Think Capital to explore a wider range of funding options. Big Think Capital boasts a high approval rate and can guide you through the process of securing the perfect financing solution for your LLC.

Take Action and Fuel Your Success

Don’t let limited funding restrict your LLC’s growth. By following these steps and leveraging the resources available, you can build strong business credit and unlock a world of funding opportunities. Remember, with a solid financial foundation, your LLC is poised to take your business dreams to the next level.

This is Noelle, wishing you all the success in your entrepreneurial journey!