You want to start or expand your own home based online business. However, you need to have business credit so you can apply for a loan. Very often you don't want to have to use personal credit or assets to fund your business.

There are credit reporting agencies that can provide you with a business FICO score that is based on your business risk and your personal credit score. There are instances where personal credit and business credit are linked, but it is best if you can keep them separate. By keeping your business and personal credit and assets separate, you lower your risk.

Be aware that building business credit is not the same as building personal credit. Also know that the credit protection laws are different for personal credit and for your home based company. Below are three things you can do to ensure that your business credit is off to a good and promising start.

1. Make sure you are setting the proper foundation for your business and giving yourself a good reputation with the credit agencies. If you need occupational licenses, get them. Establish a corporate structure, as well as a business credit profile. A profile is very important so that you can build a solid credit history without having to use personal credit. There are other benefits such as having cash for your ongoing expenses and being able to buy what you need. You also add a layer of protection to your personal accounts and protect yourself from personal liability should a problem arise in your business. A profile also prepares you when you need to borrow money for your business in the future.

2. Consider buying products, supplies and services from establishments that will report your credit history to the major business credit bureaus like Experian and Dunn & Bradstreet. Be aware that your business income and income potential is a major part in a business credit score. Large, stable businesses have high FICO scores. Don't lose heart if your business FICO score is low. It will go up as your business grows and you employ the right methods of building an excellent rating.

3. To enter the business credit market, you have to complete a credit assessment. This will determine if your business complies with the requirements put up by lenders and credit bureaus. Find companies that will extend your credit without checking your business credit or personal credit. Begin your business transactions on this credit with other vendors to build your profile with the credit reporting bureaus.

Many states have non-profit or government agencies that can help you get started on building your credit. In many cases, loans and government grants are available for start-up businesses. Check your state government's website for a list of these non-profit and government agencies. There are also veterans in the world of business who may be willing to take you in as an apprentice and show you the ropes. Do your research and know what options are available to you so you will be successful in building your business credit properly.