Yes, taking out a business loan and repaying it on time can help build your business credit. Your business credit score is calculated based on a number of factors, including your payment history, credit utilization, length of credit history, and types of credit used.
By taking out a business loan and making timely payments, you are demonstrating to lenders and credit bureaus that you are a responsible borrower and can be trusted to repay your debts. This can help improve your business credit score and make it easier for you to qualify for future loans and other forms of credit.
It’s important to note that simply taking out a loan is not enough to build your business credit. You must also make your payments on time and in full to see the benefits. In addition, it’s a good idea to regularly monitor your business credit report to ensure that all information is accurate and up-to-date.