Ever heard of the “5-3-2 Rule”? Neither had we, until we saw this infographic from Bank of America. Having a strong credit profile is key for any business looking to secure financing, and this rule helps business owners stay on track as they build their business credit.

Maintain 5 active trade accounts
If you want your business credit score to prove to lenders and investors that your business is secure, then you need to maintain five active trade accounts at all times. Any less, and prospective lenders are liable to think that your business’ cash flow could eventually become a problem.

Simultaneously manage 3 business credit cards
Try to keep at least three credit cards open – and in constant use – on behalf of your organization. From a lender’s perspective, this method very much preferable to ringing up all your costs, and coming close to the limit, on one card. Handling three at once shows lenders that your business’ finances are secure and in very good shape.

Pay out at least 2 accounts in full
Many lenders are going to want to see that you can make good on financing – so if you’re hoping for a strong business credit score, know that you’ll do best if you’ve already obtained and paid off at least two separate business loans.

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