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Saturday, August 16, 2014
Starting Business Credit? Top 10 Expenses You Should Get Credit For
Does your business expenses help establish your company’s creditworthiness?
In this post we’ll be covering the top business expenses companies make on a regular basis but never get credit for. It’s surprising how many business owners don’t realize all the expenses they make that never get reported to the business credit agencies. What’s even worse, many of these typical business expenses never get put in the company’s name.
Everything you do when it comes to business should be done in the business’s name. It not only makes it easy during tax time but it also protects the integrity of the corporate veil. Corporations, LLCs, Limited Partnerships, etc. are treated as separate legal entities so it’s imperative that you operate like one.
When it comes to personal and business separation I’m not just referring to credit, I’m referring to all aspects of how you structure and operate your business.
Here are ten expenses that you should be using in your company’s name that can help you instarting business credit.
1) Financial – whether it’s paying for business bookkeeping services, business plan services, or CPA services; each service should be invoiced and paid for in the company’s name. Did you know there are bookkeeping and business planning services that report to the business credit agencies? We provide sources like these in our business credit builder system.
2) Communications –are your business phone line, fax line, and cell phone in your company’s name? All of these business office services that your company pays for on a consistent basis are considered trade references and should be showing up on your company’s credit file.
3) Printing/Mailing – how often do you use printing services, mailing services or ship products? Did you know you can set up corporate accounts with companies such as Staples and FedEx and even apply for a line of credit? Let your business benefit from all the expenses it’s already making but just not getting credit for.
4) Office supplies/equipment – I’m sure you use a laptop, iPad or desktop computer for your business but how did you purchase them? Did you just run down to Best Buy or the Apple Store and use a personal credit card? Did you know Best Buy has a corporate purchase program? Did you know the Apple Store has a special financing program for businesses?
5) Web hosting/web design – paying for web design, web-hosting, domain names, and other services related to your company’s internet presence should all be paid for and established in the company’s name. Ongoing expenses such as web hosting and SEO services can be used as great trade references.
6) Marketing & Advertising – another ongoing and sizable expense a business should be getting credit for is marketing & advertising. Many marketing companies offer lines of credit with terms ranging from net 30 to net 60 days.
7) Air Travel – literally every airline has a corporate travel program which you should be using if you travel for business.
8) Transportation – need a rental car when traveling for business? Why not use a business car rental program? Did you know you can also lease a car in your company’s name?
9) Fuel costs – if you use a vehicle for business then you obviously purchase fuel on a regular basis. Fleet fuel cards are great when starting business credit since you’ll use it on a regular basis.
10) Meals/entertainment – whether it’s a business lunch or taking clients out to an event; you should be using the company credit or debit card for these expenses.
Starting business credit doesn’t have to be a difficult process if you take advantage of your company’s existing expenses and ensure your business gets credit for it. It’s simply a matter of taking action, putting accounts in the company’s name, and using trade reporters.