Opening a real estate agency poses a wide variety of challenges, especially when it comes to credit. It can be tricky to navigate this aspect of business, but the right background knowledge can help you succeed. If you’re trying to establish or improve your professional credit in the real estate industry, here are five tips to consider.
Make Sure Your Real Estate Business is Registered
Some laws may vary, but most businesses are required to register within their state. Depending on your business model (for example, an LLC or sole proprietorship), you may have already registered with the state. If you haven’t, you’ll likely need to have a business license before you can do so. In any case, being officially registered makes it easier for credit agencies to build your professional profile.
Consider a Business Credit Card
Much like having personal credit cards, having a business credit card is a tool that can help you improve your agency’s professional credit. Your eligibility for a card often depends on your personal credit (since you as the business owner would be the professional card holder), and most companies offer extra benefits for opening a business card.
Work With Companies That Report Directly to Credit Bureaus
Whenever you get the opportunity to work with a supplier, lender or other company that reports your payments directly to credit bureaus, do so. By sending your payment history straight to the companies in charge of monitoring your credit, you can ensure that all your hard work and punctuality don’t go unnoticed.
Watch Your Personal Credit
Your personal credit makes a significant impact on your professional credit rating. As head of the agency, payments, loans and company credit cards will all be linked to you. If your personal credit history isn’t ideal, you may have a difficult time securing financial aid or opening business accounts.
Pay Everything On Time
Making payments on time is just as crucial for the real estate industry as it is in your personal life. Similar to Stefan Soloviev and his multi-faceted corporation, you and your agency will likely have bills to pay to multiple different providers. From the electric company powering your office to the contractors renovating your properties, make sure everyone receives their payments on time.
As a professional in the real estate industry, you have the power to build great business credit and take your agency to new heights. A bit of planning can make a huge difference in your company’s success.