How to establish corporate credit?

Question

I have seen numerous question like this, but none seemed to cover corporate credit. Does anyone know the best way to establish corporate credit? How long does it take? What is the application process like when applying (more paper work, hassle, etc.)? Would really like to know. The web has so many companies out there that talk a good game, but who is trust worthy.

Answer 1

Corporate credit is established just like personal credit.  It starts when your business applies for a Federal Tax ID number.  From that point the credit bureaus are keeping track of your credit worthiness.  Do you pay your taxes on time?  Then every time you apply for credit, your business credit history is checked.  This is when your business buys goods or supplies on credit or maybe service is ordered such as advertising.  Each company can then report back to the credit reporting agency if you are delinquent on any of your payments which tarnishes your credit.

Dunn & Bradstreet is the main business credit reporting company that I am aware of but I think the Big 3 (Trans, Exper, & Equi) may also do business reporting.