There are a handful of companies across the U.S. and in Canada that advertise to offer a business credit building package or are “verified lenders.” Some are legitimate. Some are not. In part, the internet has created a breeding ground for scammers to collect money from people looking to start new businesses, then offer nothing, or very little in exchange. These scams involve collecting an upfront fee in order to get the business owner the funding or credit service that was advertised.

            Loan scams most commonly require an upfront fee to pay for alleged loan insurance required. Often, this is a scam tactic. In some cases, once the consumer pays the fee, the “company” is never heard from again. In other instances, empty promises are made and the ‘company’ drags the process on and eventually stops corresponding with the client.

PREPARING FOR STRONG BUSINESS CREDIT

            Anyone who has worked in construction or around it will know that prep work can be deceiving. At first, it seems that prep work is the easiest and the fastest stage, for the most difficult tasks are yet to come. On the contrary, prep work is the most crucial part in assuring accuracy and results in the near future. Similar to construction, prep work for stronger business credit is what can take the greatest amount of time. It is beneficial for a small business owner to have access to the information necessary for building a business credit score, or to work in association with trusted resources with experience in the field of business credit.

            If you have ever applied for anything from a small business loan to a business credit card for your business, then you already know that without good business credit, the prospects are bleak. Take the time to build your business credit and do it the right way—from the ground up. The long-term rewards are exponential.