4 steps you can follow to build your business credit

As an experienced Canadian credit reporting professional and a business man himself, Pat Drummond knows the challenges that small businesses face, and has learned from experience how to avoid common mistakes, which may eat up valuable time and money. Small businesses especially ones that are generally family-owned or those that have been operating for less than 2 years need access to credit. Here are 4 steps you can follow to build your business credit:

1. Establish a Business Credit Report

Every business starts with no credit score, and no credit history. Similar to your personal credit report, a business good credit profile can help your company grow and prosper. As you make connections to your business clients, you can start to build your working relations and credit profile.  As the business expands and starts establishing it, approvals for loans will get easier.

2. Leverage Business Relationships

It is important to start building a good business foundation and working relationship with your suppliers. There may be a variety of vendors which your business relies upon to get the job done or to provide products and having a great working relationship can help to improve your business credit report. If you regularly shop at Home Depot for example, you can open up a contractor account and start to build your business credit in that way. Many companies will offer perks and special discounts for regular customers. This includes private businesses and contractors.

3. Justify the Loan

Having a sound business plan will go a long way into helping secure the credit and loans that your growing business needs. When requesting credit, lenders such as banks will want to know what you plan to do with the money. A solid plan will not only help you success on your plan, but will also calm the nerves of lenders and any investor who may want to support the business financially.

4. Separate Business from Personal Credit

This is a common mistake among small business owners. It is easy to fall into this situation because you want your business to succeed. However, keep in my that separating your personal finances and your business finances is a must. Your credit report will be in a much healthier position and you will reduce the risk of your business impacting your personal credit score. If the business were to ever close or go bankrupt the consequences can be significant and even worse when you are held personally liable for business debts.

Business Mistakes Even Smart People Make

As 2013 is making way for 2014, it is vitally important for you to learn from your travels.     I decided that I am going to tackle business fundamentals in order to enlighten those of you who are ready for 2014.  We are going to start today.  Yes, right now.

I have observed over this past year and made note of topics that people needed clarity in.  I want to share with you, the key elements that will not only allow you to grow and follow the natural positive flow of your business. Your brand will be just where you envisioned it. But only if you actually DO what you learn.

It all starts with YOU!!!  Life is about raising the bar and achieving new heights.  In order to get to your destination you have to put your car in drive.  Are you ready to change gears?  I know you are.

Authors don’t invest in themselves to reach one person and artists don’t make their mix tapes and spend long hours making their music to sit idle on reverb nation.  Small businesses owners don’t pour their heart out only to obtain a few clients, right? You don’t have to wait until you complete some mythical goal to get started with me. Frankly, if you could have reached that goal alone, you would have. Now you have help to reach that goal and now it the time.

Well, just what does it take, Dr. Wright?  I am so glad that you asked.  Before I answer, I want to ask you a question first.  This is about you.  What are you trying to accomplish?   That’s all the time I have for today but remember what I always say!  Ignoring one’s conscience is neither safe nor right!  ~ Dr. Letitia Wright

Let me get a show of hands

Let me get a show of hands……….

I often hear people engage in conversation about how so long are the days of people genuinely caring for one another and just doing random acts of kindness.  Can I tell you that good deeds still exist?  How many of you truly believe that there is still goodness out there?  Let me get a show of hands.  You know on a regular basis we are consumed with all the bad or let me stop there and say situations that are not so ideal that occur in the world.  I want to share a GREAT DEED that happened on this past Saturday.

I had the pleasure of attending the Black Book Festival in LA.  The day was beautiful.  The time was just right.  I met an amazing group of individuals.  There were some future connections that had been made that day.  I was looking forward to the real relationships that would soon be established as a result of attending the festival.  I had the honor of speaking on Crowd Funding which I am very passionate about.

After the festival had concluded there was a woman who was walking back to her car.  She was getting ready to head home.  She decided to make a quick phone call.  This woman was engaged in a conversation on the phone with a confidant that she often shares life stories with.  The woman shared how the details of the festival and all that had taken place.  On the way to her car with the phone still in hand, she stumbled upon a wallet.   This wallet was in plain view.  There was a wallet but no owner to the wallet anywhere around.  There were several rows of cars.  It was practically deserted.  It was just the woman and the wallet.  It was very quiet.  There was one single family that was walking towards the Los Angeles Convention Center.

The woman bent down to pick up the wallet.  Her thoughts went to I wonder where the owner is located?  Could he/she be at a restaurant?  What if they were stranded without gas?  The woman began searching.  She tried looking for clues as to the car of the owner.  She wanted to find the owner and return that which was lost.  Where was the owner?  There was only one answer to that question so we will have to resume answering thattomorrow.  Remember what I always say.  Ignoring one’s conscious is neither safe nor right.  I will see you next time.  ~ Dr. Letitia Wright

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