The first and the most important step in building a small business credit is to get a business credit card. The card is an easy and convenient way to start- all credit card issuers report your credit activity to the credit bureaus thus starting a credit history of a newly opened business.
Business credit card for a small business is usually backed by owner’s personal credit. Some issuers report credit activity to the business credit file and business owner personal credit file, some report business credit only until there is a delinquency or a default on a card.
It will help you to achieve multiple goals at one shot: help you to track business expenses for tax, accounting, and planning; establish a business credit, separated from a personal credit of the owner, earn business specific rewards – for example cash back on office supply, gas or business travel.
Read more about small business credit cards in our article.
Here are some of the best business credit cards:
no annual fee
3% cash back on gas, office supply, cellular service
1% regular cash back
up to $250 annual bonus