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What common mistakes plague the establishment of a solid Business Credit Rating?

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It’s not uncommon for entrepreneurs to seek to establish a good business credit rating because their personal credit rating is less than stellar. While that desire is understandable, it’s also a mistake. As mentioned above, you’ll want to search for creditors who are willing to advance credit based solely upon your business credit rating, but you may not always be able to find creditors of that sort. It’s thus likely that many of your credit transactions will depend not only upon your business credit rating, but also upon your personal credit rating. In order to ensure that your spotless business credit rating isn’t rendered meaningless, it’s therefore important that you work to repair your personal credit while establishing your business credit rating.

You’ll also want to avoid the temptation to build your business credit rating too quickly. Again, it’s understandable that you want to establish your business credit rating as soon as possible, but do so carefully through the correct choice of creditors, prompt payment of debts and a sound business structure. It’s not uncommon for young businesses to be offered the opportunity to purchase an unused corporation that, supposedly, will allow the business the ability to instantly and easily secure credit. Although there are exceptions, most of those offers are, in fact, too good to be true. If you still like the idea of “buying” good credit, make sure that you at least take the time to research the business credit rating of the offered company.

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