When you shop for small business electricity, your small business credit is a factor in getting your service set up. The unfortunate reality is, you may have to pay a deposit to start electricity service for your small business. That’s why it’s important to build small business credit. In this article, we’ll explain why you may have to pay a deposit, alternatives to pay a deposit, and how to build small business credit so you don’t have to pay a deposit.
For many people with poor credit or no credit, getting a basic need like electricity can be incredibly expensive and seemingly impossible.
Electricity providers perform credit checks for traditional postpaid electricity plans before agreeing to connect power to your home. If your credit rating is low or if you’ve just struck out on your own and don’t have credit established, your provider may require a large deposit before agreeing to do business with you.
A prepaid electricity plan with an established electricity supplier can be a tremendous help in this situation. With prepaid plans, your provider won’t perform credit checks, they don’t require a deposit, and everyone is guaranteed to be accepted. Based on the same concept as prepaid credit cards, this model is very popular where it is available.