When you open a small business, you have the opportunity to build credit separate from your personal credit. The better your small business’ credit, the better terms you can get with supply vendors and lending institutions, like banks. This means being able to borrow at a better rate to finance expansion in the future. Why Building Good Business Credit is Important Like personal credit, business credit is monitored and reported by credit bureaus. “The major business credit bureaus that compile and provide copies of the reports are: Dun & Bradstreet, Experian Business, Equifax Business, and Business Credit USA,” according to one credit expert. By having a business credit history separate from your personal one, you can minimize the effect negative events on one might have on the other. For example, if you have some financial missteps that impact your personal credit history and score, they shouldn’t impact your small business credit if you have established a clear separation and vice versa. —Biz Filings.com Building business credit is essential to a company’s reputation and success. Establishing good business credit is done through a combination of practices. Your small business will have to observe these to build a solid commercial credit record. How Entrepreneurs can Establish Good Business Credit When you start a company, you’ll probably need corporate credit for a number of things. Keep in mind, though, these are ultimately your personal responsibility. So, make sure you understand the terms. Here’s how entrepreneurs can establish good business credit: Secure a debt instrument in the business’ name. A “debt instrument” is simply another term for “loan” or “line of credit”. It means you are borrowing money in advance or taking on debt to purchase necessities for your business, like fixtures, equipment and supplies. Apply for a business loan, line of credit, or vendor credit that does not check your personal credit score or history. You are attempting to obtain credit in the business’s name only. Commercial lenders may waive personal credit checks in lieu of providing collateral or a down payment. Another method for securing a debt instrument is to apply for a credit card in the name of your business. Terms and reporting procedures will vary by credit card companies, but in general, the monthly payments will reflect on your business’ credit profile. Build your credit history. Make credit line and business loan payments on time. Schedule automatic payments debited from your business checking account for business loans and lines of credit. Or make payments on recurring credit lines or loans at least three to five business days in advance of the due date. Get in the habit of making payments larger than the minimum due. Check your business’ credit files for errors. Request copies of your business credit report from each of the corporate credit monitoring bureaus, six to 12 months after securing a commercial loan or line of credit. Review each report for accuracy and dispute any errors directly with the agency reporting the erroneous items. If errors are disputed to no avail and are not legitimate, consider having your attorney contact the reporting agency to resolve the situation. Like personal credit reports, business credit reports may be adversely affected by incorrect trade lines being reported. How have you established business credit? What mistakes would you avoid? Please share your thoughts and experiences! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Social media is part of our day-to-day lives. Even individuals who don’t have active social media profiles are still impacted by these various digital networks, in one way or another. And, the matter is all-the-more complicated when business practices are brought into the mix. The fact of the matter is, social media marketing is a must in this day and age. But, social media can easily steal time, money, and even reputation from your company. Tips for Creating an Effective Employee Social Media Policy Let’s face it, we all have unprofessional habits; and, some social media habits can be the worst among them. But, you need this medium to reach new customers and build a relationship with others. It’s also an invaluable tool for customer relations, as well as customer trust. Social media can effectively define a brand. The problem is, that image can easily be a negative one. Just one false move or faux pas is all it takes to unleash unwanted fallout. Facebook’s users spend an aggregate of 10.5 billion minutes per day on the platform (excluding mobile). And engagement — based on the number of monthly users who visit the site daily — is even higher today. Assuming that users spend about the same amount of time today, that means people all over the world have spent a collective 55 million years on Facebook since the beginning of 2009. Twenty minutes a day is a lot of time — well more than a year over the course of the average life span. If users spent just that time working for minimum wage instead of liking and poking each other, each would pull in about $880 a year. That’s almost $900 billion in aggregate hypothetical labor year. —NBC News So, like other things in life, this requires balance. You want productivity to remain high and efficient. But, you also do not want to limit freedom in the workplace. This creates a conundrum, although it doesn’t have to be paralyzing. To get the most out of social media for marketing and to keep employees content with the workplace, you need a policy. The good news is it doesn’t need to be complicated. In fact, being specific reduces confusion about what is and what isn’t acceptable. Here are some helpful tips for creating an effective employee social media policy for your business: Don’t step on their protected legal rights. Did you know there are federal laws which protect your employees relating to social media? The National Labor Relation Act states that companies are prohibited from interfering with employees posting or holding conversations through social media in regard to wages and working conditions. Clearly state which behaviors are not acceptable. Although there are some limits to what you as a business can and can’t do, it’s good to know certain behaviors do not have legal protections. So, you can prohibit use of defamatory, abusive, offensive, demeaning content, and the like. (This also includes personal complaints.) Require all employees include a profile disclaimer. You’ve probably seen the phrase, “Tweets are my own.” This disclaimer is necessary, particularly for team members who do not have express permission to speak for you company. A disclaimer also helps to reduce confusion between official company word and personal opinion. Learn your state’s laws before creating a social media policy. There are not only federal laws about social media, but your state likely has laws as well. Take the time to learn what your state’s laws are in relation to social media for your own protection. Be prepared to periodically (re)educate and enforce the rules. No social media policy is effective if it isn’t clearly understood and readily accessible. You need to periodically go over your policy and be ready to enforce it, when necessary. How do you use social media in your business? Do you allow employees to use social media for promoting your company? What do you think are the most effective ways to leverage social media through your employees? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group. [shareaholic app=”follow_buttons” id=”26833294″]