 TITLE: How Do I Establish Credit For My New Business? CONTENT: What Is Business Credit?\n------------------------\nMuch the same way a consumer's credit score comes from an analysis of their credit history, a business develops a credit profile based on its track record making payments and managing credit. Business credit reports maintained by Experian and other companies (Equifax, FICO and Dun & Bradstreet) look different from consumer credit reports, but serve a similar purpose. Like a lender looking at consumer credit scores before extending credit, investors, lenders and vendors may check a business's credit score before entering into an agreement.\nMany businesses start out as one-person sole proprietorships, in which the business and its owner are one in the same. In that situation, the owner's personal credit and the business's credit are also one in the same. If a sole proprietor applies for a credit card for their company or seeks a business loan, lenders may check the owner's personal credit score to help decide whether to work with them.\nIf you're a sole proprietor who hopes to grow your business, it's important for both your business's future and your personal financial welfare that you begin to build a business identity separate from your own.\nEstablishing credit for your small business will give your company opportunities to finance future growth, set up credit accounts with partners and suppliers, and secure credit cards and other revolving credit accounts to help manage cash flow. Independence from your personal credit file helps protect your business in case any missteps or mishaps, such as identity theft or a forgotten medical bill sent to collections, lower your personal credit score. Conversely, if your business experiences a down cycle and gets overextended on credit, your personal credit score won't suffer as a result. END