If you’re an entrepreneur looking for the next big thing, you’ve undoubtedly noticed that business is going to pot. Specifically there are more and more states legalizing medical and recreational marijuana and a burgeoning industry starting to take hold in the fledgling marijuana industry.
However, there are some old school things that you’ll need to do to make sure your new age business gets the funding it needs and having a decent credit portfolio is at the top of the list. Here’s a few pointers to make sure that you have solid business credit.
- Keep your business debt manageable. Keep in mind that credit agencies take your unused and used credit ratios into account so prudence needs to be a keyword here.
- In some ways, business credit portfolios work the same as the personal variety. Specifically paying on time positions you as a low risk to lenders.
- Reporting your business as the right kind of separate legal entity helps it to gain a credit portfolio all its own. Whatever route you choose, most lenders will require proper documentation including an Employer Identification Number (EIN).
Whether you’re a startup or existing company, the chances are you’re always keeping the financial health of your business front and center and understanding how important your credit portfolio is can’t be understated. In fact, the chances are you’ll need to polish this part of your business arsenal up when you’re in a fledgling industry like the one for cannabis.