Growing and establishing your health or vision insurance brokerage business is a consuming job. One of the most important things to follow through with to ensure growth is to build your company’s credit rating. Building credit isn’t always easy but it works much the same way for your business as it does for your personal credit.

You may have never thought of the idea or don’t know how to go about doing this – that’s why we’re here! Here are 5 simple ways to build your company's credit rating:

1. Get your personal credit in order first 

When starting out and applying for business credit, banks need to know that the money they are lending the business is being managed by someone who is trustworthy and dependable. Without a business credit history to go on, they will rely heavily on your personal credit. They like to see a personal score somewhere in the mid-600's in order to feel comfortable in extending a credit line to the company. If a lender sees you pay your personal bills on time and keep any credit cards under 30% of the limit, they are more likely to lend to the company. Keep in mind that anyone with a 20% share in the company is also likely to have their credit looked at as well. 

2. Open a business bank account

When you are getting started in your business, it is tempting to use your personal accounts, but that will do nothing to establish your company credit. Opening a company bank account early, will help when you go to apply for credit with a lender. Establishing a cash flow through the company account will help lenders determine how big of a risk they are taking in lending you money.  

3. Apply for credit early 

You may not be at a point that you need to apply for credit, but waiting until it is necessary may be your downfall. Most banks won't extend a considerable line of credit until your business has been established for at least two years. In the meantime, you can begin to build your credit by applying for a business credit card, a small bank loan, or even small lines of credit with local vendors for things like office supplies. Retailers such as Home Depot or Office Depot offer small lines of credit that you can open under the business name to help you establish the company's credit.

Showing that you pay invoices on time can regularly help build your credit score. The earlier in your company's history that you begin to apply for credit, the more quickly you will be able to establish your credit.

4. Establish a payment history by using your credit

Just like with your personal credit, the best way to establish and build your company's credit is by using it. Make sure you make timely payments if you have a business credit card and keep the balance low. Establish a profile with Dun & Bradstreet, a business credit reporting agency and check it often. You can add references to the suppliers and companies you've worked with to help establish your credit. 

5. Practice good habits

Practicing good credit habits early on in your business' life will quickly establish a lucrative future. Keep creditors paid in a timely manner and credit card debt low. Be patient as you establish your company and don't rush into debt the company can't handle. Create stability in your company and don't max out your cards. Continue to keep an eye on your personal credit as well. You want your company credit to have a positive impact on your business and in time you will be able to establish a legitimate company with strong credit. 

All this information could be a lot to digest – and you will certainly not reach your credit goals overnight. Take the time to do this right. Your future self will thank you for it, especially when you see how far your business has come!