How do I build my business credit

prodigalson

I have recently incorporated a company and would like to build the company's credit.
Can anyone give any advice on how to do this?
As the company has been active less than one month what would be the best method to do this. Please do not advise to use services like Cashplus, as I have had very bad experiences with them in the past.

T-G-C

I don't have much knowledge in the business side of credit, but I could suggest using suppliers who offer delayed payment (in other words credit) in exchange for assets for your business. By meeting your contractual commitments with them, in essence meeting the required payments until fulfilled, it could help establish the businesses financial credibility.

Like I said, I have little to no knowledge in this area, but I thought I'd suggest something that could be of some help. Good luck with everything and I hope it all works out perfectly for you.

prodigalson

My business doesn't really involve services for people, and the only asset it has is cash in the bank. Could anyone provide any methods to even start building credit

[Deleted User]

Business Credit Card?

prodigalson

I can't get a business credit as the business has recently been incorporated and for most business credit cards at least one year's trading is required. I was considering something like a mobile phone contract or a laptop on lease or something like that

[Deleted User]

Wait a year then.

Just like personal credit history it doesn’t happen overnight

MEM62

The way that companies are assessed as a credit risk is different to the way that individuals are assessed. Basically, you need a trading history - there is no fast track and there is little in terms of strategy that can be employed as you would for personal credit.

Once you have a trading history the company will be assessed on it's financial returns where potential lenders will look at turnover, profitability, assets and, of course, liabilities. If you are a new or small business the company may not be viewed as an acceptable risk, in which case you would have to put up personal guarantees against any borrowing by the company.