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Vendors Who Help Build Business Credit
- 1. VENDORS WHO HELP BUILD BUSINESS CREDIT
- 3. BUSINESS CREDIT Business credit is credit tied to your company’s EIN (Tax ID Number) and not your Social Security Number Therefore your business builds credit to buy the goods and services it needs Inquiries for business credit do not go on your personal credit reports Your business and personal credit scores are independent and can diverge dramatically www.creditsuite.com/EIN
- 4. GETTING STARTED WITH BUSINESS CREDIT Your business needs to be legit to lenders and vendors This means a professional-looking website and email address And business phone and fax numbers listed on 411.com Plus the business phone number should be toll-free (800 exchange or comparable) www.creditsuite.com/EIN
- 5. BUILDING BUSINESS CREDIBILITY You’ll need a bank account devoted to your business – this assures you are not commingling funds You must have all licenses necessary for running your business And they all have to be in the exact, correct name of your business, with the same business address and phone numbers www.creditsuite.com/EIN
- 6. WORKING WITHTHE IRS One of your first stops should be at the IRS website You need an EIN for your business – they’re free You also need to select a business entity such as corporation, LLC, etc. You can start off as a sole proprietor but you will probably want to eventually change to a form of corporation or partnership in order to minimize risk and maximize your tax benefits www.creditsuite.com/EIN
- 7. BUILDING BUSINESS CREDIT Business credit is not automatic It must be built However, it can be done easily and quickly – much more quickly than you build up your consumer credit scores Vendors are a big part of this process www.creditsuite.com/EIN
- 8. BUILDING BUSINESS CREDIT If you skip ahead, you will be turned down repeatedly You won’t start at the top with business credit Fortunately, we know the steps you can take And we know the order in which you need to take them www.creditsuite.com/EIN
- 9. STARTINGTHE BUSINESS CREDIT REPORTING PROCESS Start with heading to the D&B website and getting your free D-U-N-S number This is how D&B gets your company into their system, to eventually generate a PAYDEX score No D-U-N-S number, no record and no PAYDEX Once you are in D&B’s system, search Equifax and Experian’s sites for your business You can do this at https://www.creditsuite.com/reports/ If you don’t have records with them, move onto the next step in the process This way Experian and Equifax will have something to report on www.creditsuite.com/EIN
- 10. TRADE CREDIT You start off with trade credit Also called trade lines This is often Net 30 day terms It’s for the things you buy all the time, like coffee and shipping boxes www.creditsuite.com/EIN
- 11. TRUE STARTER CREDIT Not just any old vendor credit will do You want vendors which will approve you with little effort You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet Equifax Experian www.creditsuite.com/EIN
- 12. TRUE STARTER CREDIT You want five of these or more to move onto the next step Which is revolving store credit You may have to apply more than once to these vendors And you may need to buy some things you don’t need, to prove you are responsible and will pay on time Consider donating unneeded items to charity www.creditsuite.com/EIN
- 13. QUILL OFFICE SUPPLIES Find them online at https://www.quill.com/ They sell office, packaging, and cleaning supplies They report to D&B You must place initial order first unless D&B score is established Usually they’ll put you on a 90 day prepayment schedule If you order items each month for 3 months, they typically approve you for a Net 30 account www.creditsuite.com/EIN
- 14. ULINE SHIPPING SUPPLIES Find them online at https://www.uline.com/ They sell shipping, packing, and industrial supplies They report to D&B You must have your DUNS number They will ask for 2 references and a bank reference First few orders might need to be pre-paid to initially get approved for Net 30 terms www.creditsuite.com/EIN
- 15. MONOPOLIZEYOUR MARKETPLACE Find them at: https://www.mymonline.com/ Everything you need to know about marketing and business 10 audio CD set They report to Experian TRUE starter account Upon check out choose the “4 equal payments of $59.99” option First charge takes place in 30 days Need bank account, EIN, deliverable address 30-60 days for reporting www.creditsuite.com/EIN
- 16. NON-REPORTING TRADE ACCOUNTS While you do want trade accounts to report to at least one of the CRAs, a trade account that does not report can still be of some value Non-reporting accounts can be tapped for trade references (just ask!) Plus credit accounts can help you to better even out your business expenditures, making budgeting easier These are companies like PayPal Credit,T-Mobile, and Best Buy www.creditsuite.com/EIN
- 17. MONITORYOUR BUSINESS CREDIT Know what is going on with your credit Make sure it’s being reported Address errors as soon as possible Get in the habit of checking your credit reports and not just your scores www.creditsuite.com/EIN
- 18. MONITORYOUR BUSINESS CREDIT D&B: https://www.dandb.com/credit-builder/ Experian: http://www.smartbusinessreports.com/Landing/1217/ Equifax: http://www.equifax.com/business/business-credit-monitor- small-business Experian and Equifax are $19.99; D&B ranges from $49.99 to $99.99 We can help you monitor your business credit at Experian and D&B for only $24/month: https://www.creditsuite.com/business-credit- monitoring www.creditsuite.com/EIN
- 19. REVOLVING STORE CREDIT Once you have 5 or more vendor trade accounts reporting to at least one of the CRAs, you can move onto revolving store credit This is companies likeWalmart and Dell These companies are more likely to have goods you need Use your EIN on these credit applications www.creditsuite.com/EIN
- 20. FLEET CREDIT Got 8-10 accounts reporting? Then move onto fleet credit These are companies like BP and Conoco Use this credit to buy, repair, and maintain vehicles Make sure to apply using your EIN If you have enough trade lines reporting, then even time in business or revenue requirements won’t matter www.creditsuite.com/EIN
- 21. CASH CREDIT Have you been responsibly handling the credit you’ve got so far? Then move onto cash credit These are companies likeVisa and MasterCard Keep your SSN off these applications; use your EIN instead www.creditsuite.com/EIN
- 22. RESPONSIBLE CREDIT MANAGEMENT Always use your credit responsibly Don’t borrow more than what you can pay off Keep track of balances and deadlines for payments Paying off on time and in full will do more to raise your scores than nearly anything else www.creditsuite.com/EIN
- 23. BUILDING BUSINESS CREDIT PAYS DIVIDENDS Good business credit scores help you get loans Your lender knows you can pay your debts They know your business is legitimate Your EIN connects to high scores and lenders won’t feel the need to demand a personal guarantee www.creditsuite.com/EIN
- 24. VENDORS WHO HELP BUILD BUSINESS CREDIT Legitimacy is everything, and most of it is easy and/or free to do. Make sure to do this early Trade accounts will approve you quickly but you need to make sure they report to at least one of the big business CRAs As always, use your credit responsibly We can help www.creditsuite.com/EIN
- 25. Contact Us for More Information 877-600-2487 info@creditsuite.com Vendors who Help Build Business Credit www.creditsuite.com/EIN