How to Form Established Business Credit to Help Me Start a Trucking Business

Having access to credit is often critical for new businesses that need equipment, labor and facilities to help them grow. Likewise, creditors and suppliers often rely on a business's credit rating to assess its financial health and eligibility for lending. Whether you are starting a trucking business or a flower shop, obtaining trade lines, or credit relationships, can be a great way to build your business and establish the foundation for its future growth and success.

Instructions

1

Create and register your business structure with the appropriate state or local government to ensure that your company is recognized as a legally business entity. You business can be a sole proprietorship, partnership, or any other recognized business entity. A limited liability company or corporation are required if you want the debts of your business to be legally separate from your own.

2

Get a federal Employer Identification Number (EIN). You can get this number, which is used for business tax reporting and required to open a business bank account, through the Internal Revenue Service via phone or Internet, usually within the same day that you apply. You must have a valid Social Security number for the application.

3

Open a business bank account using your legally registered business name. This step ensures that your personal finances and that of the business do not co-mingle and allows a bank to extend you business credit. Most banks offer business checking account packages that may waive monthly fees, offer reduced fees for a high amount of transactions or offer bill pay services, in addition to many other services.

4

Set up a business phone line for lenders and suppliers. Make sure that you list the number in a reputable business directory. Suppliers, with whom you may establish lines of credit or lenders like banks and credit card companies may want to contact your business about invoices, loan offers or special business credit cards. Having a viable contact number ensures that they can reach you.

5

Request credit in your company's name. Credit can be extended from one supplier to another via goods awaiting payment, or by bank loan or credit card. Business owners often enjoy reduced interest rates and rewards like travel miles or cash back when using business credit cards. Credit transactions reported to one or more of the three major credit bureaus may increase your credit eligibility more quickly and give you access to other loans, increased credit lines and more favorable credit terms.