How to Open a Business Credit File in 2019?

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Written By Online Figure

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Business Credit File

2019 is only a few months away. You might have already started wondering, how to take your business forward in 2019 and have a glorious year. This notion becomes true, especially if your business is new or you own a start-up. You might have already done some research, and by this time would have already started documenting your future plans. Amongst the other things you have thought about your business in 2019, it will be worth to think about opening a business credit file. There are many benefits to opening a business credit file. And, you can rest assured that the business will be the sole beneficiary of the business credit file.

Business credit could be the lifeline of any business. No matter, it’s a start-up, SME or a large enterprise, requirement of business credit cannot be ruled out for any of them. You required finance for running the day to day operation. You might require finance for expansion. If it’s an established enterprise or a large enterprise, then finance could be required for acquisitions. In fact, there could be tons of scenarios where you might require finance for your business. Apart from the planned activities for the business, you might need finance for unforeseen financial emergencies as well. Well, business credit is the answer for all of your financial requirements. So, now you know how important business credit file is for your business, you might be wondering how to build business credit fast? More than that, you might be wondering how to open a business credit file.

Before you decide to open a business credit file. You need to decide with which report agency you going to open the business credit file. In this article, we have considered Experian, which is a reputed credit reporting agency across the world. Experian is used by most of the financial institutions across the world, for seeking credit reports. You need to understand that your business credit file gets opened with Experian, only when one of your credit grantors report about your company to the Experian. Hence, the first thing you need is a business credit account. You have to make sure that the business credit account is from a creditor who reports to Experian. You can definitely check with the bank or the concerned financial institution, whether they report to Experian or not.

Now, once you are done with the initial step, there is some quick way through which you can get your business credit file opened within a couple of months. The first thing which you do is trying to avail some credit from your business credit card. Business credit cards are different from personal credit cards. You can get some quick finance for your business through the business credit card. Just like the normal credit card, it will have a pre-approved credit limit. Some of them might also provide revolving credit, but it will be definitely based on your credit score. Now once you pay the billed amount on the credit card, your creditor will repay this payment to Experian. Once the reporting is done, Experian will create your business credit file. And, from that point onward all the credit transactions will be recorded in that file. On a different note, the business credit doesn’t reflect your personal credit, and it will have much higher credit limit in compared to the personal credit cards.

In case you don’t have a business credit card, or you don’t want to avail one, then you can register with You can actually add up to eight accounts to your business credit file. This includes gas, water, power mobile, landline phone, internet etc, which is registered in the name of the business. Whenever you make payment from your business account to the accounts you have added, your credit file gets created and your credit history gets generated from that point onward. The steps mentioned in this article could be also used for opening business credit file with Equifax, which is another reputed credit reporting agency.