Tag: Build

How to Get a Business Phone Number to Build a Fundable Business

Why Do You Need a Business Phone Number to Be Fundable?

When you start a new business, it is vitally important for that business to have separate contact information from yourself.  This includes a dedicated business address, phone number, and email address.  When you first tell a new business owner this, there are a ton of questions.  Why does it matter?  Why can’t I just use my own contact information?  If I need separate contact data, how do I do that?  How do I get a business phone number and address anyway?  Do I have to have a separate phone line and location for my business? I mean, I was going to run my business out of my home.  How does this all work?

We are going to try to answer each of these questions right now.  The first question to answer is the one about how to get a business phone number and address if you are running your business out of your home or virtually.  Many new small businesses are run from anywhere the owner can access the internet.  Local coffee shops, libraries, etc. can all act as a business location if the business is run online.

Even if you never meet a customer in person, your business has to have a dedicated business address and phone number.   The question of how to do this becomes much more complicated however, when your business exists solely on your cell phone and computer.  The answer to your question is no, you do not have to have a separate cell phone, a land line, or even a building to get a business phone number.

Share our foolproof business credit building checklist and tell your friends about how you’re building business credit the quick and easy way.

What Are My Options to Get a Business Phone Number?

When it comes time to get a business phone number, you have a few options and many decisions to make.  For example, you’ll need to decide first if you are going to use a landline or a cell phone.  Next, you’ll need to determine if you want a local number, a toll-free number, a vanity number, or a regular number.  How do you choose?

Get a Business Phone Number: Landline vs. Cell Phone

If you get a traditional landline with a business number, the process is as simple as calling out the telephone company.  That’s where the simplicity ends however.  A business landline is considerably more expensive than a residential one.  It is also a kind of invasive process to have a landline installed.

You are probably thinking it is much more expensive to get an extra cell phone.  The truth is, however, that you do not even have to do that.  There are many services now that will offer a business number and forward it to any number you want using the internet.

They offer other services as well, including transfers, multiple numbers, vanity numbers and even live receptionist.  Of course, the more bells and whistles you choose the more they cost, but generally speaking these services are super easy to get started with.  Some even offer base packages for free.

get a business phone number Credit Suite2

Local vs. Traditional Toll-Free vs. Vanity

Usually, you need a toll-free number regardless.  If you cater to a local market as well, having a local number could also be useful.  A vanity number can be nice for ease of remembering.  What’s a vanity number? Those are the numbers that go along with your business, for example, 1-800-55-Pizza for a pizza joint.  This type of number is not necessary, but it can help with branding.  They are easy to acquire with the new virtual business telephone companies out there. You simply request your number, if it is available, it’s yours!

Is it Better to Get a Business Phone Number Online?

It seems like new options are popping up daily for getting a business phone number using the internet.  Known as VoIP, these services are gaining popularity for business phone service.  Here are just a few reasons why.

First, they are by far the best value.  You can get all the features you need for a fraction of what it would cost with a traditional landline.

Most small businesses simply do not have the budget to set up and handle on an ongoing basis a complicated PBX system with a receptionist and extensions for each desk. When you choose the right VoIP package, you have all of this and more built right in to a low flat rate each month. The following are just a few of the features you will find available with most VoIP companies.

  • Internet Faxingjust in case you need to deal with someone who is still faxing.
  • Automatic Call Recordingso you can have a record of all calls coming in and going out, if needed.
  • Conferencingallows you to give clients a number to call that will allow everyone to be on the same conference line.
  • Call Forwardingallows calls to ring on all your devices, and even more than one phone, at once.  In addition, you can set for calls to forward only during certain hours.
  • Auto-Receptionistscan make your business sound more professional.
  • Extensionslet you use a single main number to reach everybody.
  • Voicemail and voice to textwill send you emails with the voicemail, and can even put them into text form if needed.

Where to Get a Business Phone Number Online

While there are many companies that offer VoIP telephone services for business, and new ones are coming into the picture each day, these are a few of the most popular currently.

Grasshopper

Grasshopper is a business service that uses the mobile phone you have already.  Many others use an office VoIP setup. You can get a business phone number, receive calls from that number using your phone, and set up as many users as you want with custom extensions.

In addition, service from Grasshopper includes:

  • Queuing of calls
  • Call scheduling
  • Conference calls
  • Call routing/ auto-assistant
  • Voicemail to email

Because it is mobile, it provides more features than other VoIP providers.  Be aware however, that some users say the quality isn’t that great. For each one that is unhappy it seems, there are many that have been very pleased, so don’t let that be your sole decision maker.  Also, like most VoIP mobile apps, minutes are charged not only by Grasshopper, but also by your mobile carrier.

Share our foolproof business credit building checklist and tell your friends about how you’re building business credit the quick and easy way.

If you do a lot of conference calls, you need to know that you are charged for minutes for each caller on the conference.  Meaning if a call only lasts 5 minutes, but you have 5 callers on, then you are charged for 25 minutes. There are other carriers that offer a conference call bridge, meaning you are only charged for the one call.

Phone.com

Phone.com is a great in-between option for multiple users.  It provides a VoIP solution without the requirement of a traditional phone, and has solid basic features.  You can make and receive calls from your business number as well as view call logs and your address book when you have an internet connection. From your computer you can:

  • Que calls
  • Set up auto-receptionist
  • Schedule calls
  • Send and receive faxes

Ring Central

RingCentral has all of the features you would expect or need, and plans start at one $20 a month.  They also offer a free trial, but so do a few others.  It does require an upgrade to get a 1-800 number.  They also offer upgrades that will allow you to integrate with Dropbox, Zendesk, Salesforce and more.

As I said, these are the only players in a relatively new game, but they are some of the most popular at the moment.  The thing you need to remember is, do your research.  Try to consider not only what you need right now, but what you may end up needing in the future.  You need to find a service that will offer everything you could need going forward.

If you simply go with the free or cheapest service for right now and do not consider future needs, you could end up having to change in the future.  That’s not only a pain, but it could mean changing your number, which means printing all new materials and updating directories.  That is all doable, but much easier to avoid if possible.

What Types of Things Should You Consider when You Get a Business Phone Number?

So when you are choosing a company to go with, what should you consider?  Well first, current budget is obviously important.  If you cannot pay for it, it won’t do you any good.  After that, consider what you need currently.  Once you have a few options narrowed down based on these needs, narrow it down further based on what you think you may need in the future.

For example, are you going to remain small, with any other employees being local?  You may not ever need conference calling ability. Is it possible you could need to add extensions or need a live receptionist option in the future?  Then be sure you get a business phone number with a company that offers these options.

What Does a Business Phone Number Have to Do with Being Fundable?

There’s the big question, right?  What does having a business phone number have to do with fundability?  Well, it can help to understand what fundability is and why it matters. To get business funding, your business needs to appear to be a separate, fundable entity to lenders.  For this to be the case, a business has to stand on its own apart from its owner.  This means it:

  • Is formally incorporated as a Corporation, S-corp, or LLC
  • Has an EIN
  • Already has a dedicated business telephone number, address, and email address
  • Has a dedicated business bank account
  • Uses a professionally put together, user friendly, business website
  • Has a D-U-N-S number

In addition to helping a business appear fundable to lenders, having these things in place provides the separation from owner necessary to start building business credit. When you think of it that way, not having a business phone number can do a lot of damage.

Share our foolproof business credit building checklist and tell your friends about how you’re building business credit the quick and easy way.

How Does a Business Phone Number Help You Build Business Credit?

Before you ever make it to a lender that wants to see your business as fundable before giving you money, you have to build business credit.  It is virtually impossible to do this without a business telephone number or any of the other things mentioned above.  Here’s why.  To establish business credit where there is none, or to begin to repair poor business credit, you are going to have to establish tradelines with starter vendors.

These are vendors in the vendor credit tier that will extend net terms on invoices without a credit check.  They do, however, check other information before they will extend these terms.  This includes several different things, and many like to see a business number listed in the directories.

To find out more about starter vendors in vendor credit tier and how the business credit building process works, go here.

What Else Do You Need to Do to Build Business Credit?

After you have set your business up to appear fundable to lenders, and after you establish trade lines with starter vendors, you need to continue the process. After enough tradelines are reporting to your business credit report, you can begin to apply for credit cards in the subsequent credit tiers. These include the retail credit tier, the fleet credit tier, and the cash credit tier.

The retail credit tier is made up of those cards that are directly tied to a store, such as Home Depot or Best Buy.  The fleet credit tier includes cards from companies like Fuelman and Shell that can help manage fuel costs, as well as costs related to fuel and auto maintenance.  The cash credit tier is the main goal, and includes cards that are not related to specific retailers or costs.

The key is to get enough accounts reporting from each tier to sufficiently build your score so that you can move on to the next tier.  The vendor credit tier is the beginning.  Some vendors will not extend net terms if there is no business number.  If you do you use your personal number, you run the risk of payments being reported to your personal credit rather than your business credit, which defeats the whole purpose.

You Need to Get a Business Phone Number, Start Now!

If you do not already have a business number, start by considering exactly what your budget is and what you need. Then, do some research.  Find out who has what you need for what you can afford right now, with the option to add on anything you may need in the future.  That should narrow now your choices significantly.  Whatever you do, do not use your personal number.  That will not help you when it comes to running and growing your  .

Looks great, nice job!

The post How to Get a Business Phone Number to Build a Fundable Business appeared first on Credit Suite.

Get Terrific Build Business Credit Cards

We Can Show You How to Get Incredible Build Business Credit Cards

We checked out a bunch of build business credit cards and did the research for you. So, here are our picks.

Per the SBA, small business credit card limits are a whopping 10 – 100 times that of consumer credit cards!

This reveals you can get a lot more cash with business credit. And it also shows you can have personal credit cards at retailers. So, you would now have an extra card at the same stores for your company.

And you will not need collateral, cash flow, or financial data in order to get small business credit.

Build Business Credit Cards: The Advantages

Perks can vary. So, make certain to select the perk you would prefer from this variety of options.

Build Business Credit Cards – Make Your Credit Surge!

Discover it® Student Cash Back

Make sure to check out the Discover it® Student Cash Back card to build credit. It has no yearly fee. The credit card also has a six-month introductory period of 0% APR on purchases. And there is an APR of 14.99 – 23.99% variable on all purchases after that period.

One special feature is that it provides an incentive for scholars to maintain good grades with a $20 statement credit. If students earn a GPA of 3.0 or higher each school year, the card will award the $20 statement credit each year for up to five years.

Details

Use this card to build personal credit. While this is a personal card versus a company card, for new credit users, their FICO scores will be important. And this credit card provides an excellent way to raise FICO while also getting rewards.

You can earn 5% cash back at different places each quarter such as grocery stores, gas stations, restaurants or Amazon.com up to the quarterly maximum. After that, this credit card offers unlimited 1% cash back on all purchases.

In the initial year, all cash back rewards are matched 100%.

Downsides include a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is greater. And even though they waive the first late payment fee, a fee of up to $37 applies on all other late payments. There is also a returned payment fee of up to $37.

Get it here: https://www.discover.com/credit-cards/cash-back/it-card.html

Ironclad Secured Credit Cards: An Excellent Complement to Build Business Credit Cards

Wells Fargo Business Secured Credit Card

Check out the Wells Fargo Business Secured Credit Card. It charges a $25 yearly fee per credit card (up to 10 employee cards). It also requires a minimum security deposit of $500 (up to $25,000) and it is designed to help cardholders set up or rebuild their credit.

Select this card if you wish to get 1.5% per dollar in purchases without any limits or get one point for every dollar in purchases. You also get 1,000 bonus points for every month your company makes $1,000 in purchases on the card.

Details

Also, you get free FICO scores every month. There are no foreign transaction fees. It is possible to upgrade to unsecured credit. Your account is regularly reviewed. And you may become eligible for an upgrade to an unsecured card with responsible use over time. Approval is not guaranteed and depends on factors including how you manage this and your other accounts.

APR is the current prime rate plus 11.90%. There is no introductory APR period and no sign-up bonus. This is not a credit card for balance transfers.

Get it here: https://www.wellsfargo.com/biz/business-credit/credit-cards/secured-card/

Secure Business Credit Cards for Average Credit: Helpful Choices to Supplement Build Business Credit Cards

Capital One® Spark® Classic for Business

For average credit, we like the Capital One Spark Classic for Business. It has no yearly fee. There are cash-back rewards. The card gets an unlimited 1% cash back on all purchases. There is an annual fee of $0.

With this card, you will get benefits including an auto rental collision damage waiver, and purchase security. And you also get extended warranty coverage. And you get travel and emergency assistance services.

But BEAR IN MIND: the ongoing APR is 24.74% variable APR. And the penalty APR is even higher, 31.15%. Also, there is no sign-up bonus.

Get it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

Build Business Credit Cards Credit Suite

Establish business credit fast with our research-backed guide to 12 build business credit cards and lines.

Reliable Low APR/Balance Transfers Business Credit Cards: A Bridge to Build Business Credit Cards

Discover it® Cash Back

Check out the Discover it® Cash Back card. There is a 10.99% introductory APR for six months from date of first transfer. So, this is for transfers under this offer which post to your account by January 10, 2019.

After the introductory APR expires, your APR will be 14.99% to 23.99%. So, this is based on your creditworthiness. Your APR will vary with the market, which is based on the Prime Rate.

Details

You can get 5% cash back at different places every quarter. So, these are places like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs. But this is up to the quarterly maximum each time you activate. Additionally, automatically get unlimited 1% cash back on all other purchases.

You will get an unlimited dollar-for-dollar match of all the cash back you have gotten at the end of your first year, automatically.

Get it here: https://www.discover.com/credit-cards/cash-back/it-card.html

Company Credit Cards with 0% APR – Pay Absolutely Nothing!

Bank of America® Business Advantage Travel Rewards World Mastercard® Credit Card

The Bank of America® Business Advantage Travel Rewards World Mastercard® credit card has no annual fee and comes with a 0% introductory APR on purchases for the initial nine months. Thereafter, the card has a 13.24 – 23.24% variable APR

Earn 3 points/dollar spent when you book travel with the Bank of America Travel Center and 1.5 points/dollar on all other purchases. You can earn unlimited points and points never expire.

Details

There is a 25,000-point sign-up bonus when you spend $1,000 within the initial 60 days of starting the account. Cardholders get travel accident insurance, and lost luggage reimbursement.

They likewise get trip cancellation coverage, trip delay reimbursement and other perks.

There is no introductory rate for balance transfers. Also, bonus categories are limited.

Get it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/

JetBlue Plus Card

Check out the JetBlue Plus Card for an additional offer of a 0% introductory APR

Earn six points/dollar on JetBlue purchases, two points/dollar at eateries and grocery stores. And get one point/dollar on all other purchases.

Details

Spend $1,000 in the first 90 days and pay the yearly fee and get 40,000 bonus points. New cardholders get a 12-month, 0% introductory APR on balance transfers made in 45 days of account opening.

Thereafter, the variable APR on purchases and balance transfers is 17.99%, 21.99% or 26.99%, based on creditworthiness. Benefits include a free first checked bag and 50% savings on in-flight purchases.

There is a $99 yearly fee for this card.

Get it here: https://cards.barclaycardus.com/cards/jetblue-card/

Terrific Cards for Cash Back

SimplyCash Plus Business Credit Card from American Express

Look at the SimplyCash Plus Business Credit Card from American Express. There is a $0 yearly fee. And there is a 0% APR on purchases. So, this is for the initial 15 months an account is open.

But when the introductory period runs out, the APR for purchases is 14.24 to 21.24%. So, this is variable and based on creditworthiness.

Details

This credit card has numerous benefits. These include purchase protection, car rental loss and damage insurance. And they also include a baggage insurance plan, extended warranty coverage and a global assist hotline.

Also, get 5% cash back at US office supply stores and on wireless phone services. So, these must be purchased from United States providers. But this pertains to the initial $50,000 of yearly spending. Then, you get 1% cash back.

You also earn 3% cash back on spending category of your choice. So, this is from eight distinct categories. They include airfare, gas, advertising and computer purchases. But it applies to the first $50,000 of annual spending. Then, you get 1% cash back.

Cash-back bonuses are automatically credited to the customer’s billing statement.

Note: you cannot use this card for balance transfers. There is a foreign transaction fee of 2.7%. The credit card charges up to $38 in late fees. And the returned check fee is also $38. The penalty APR is 29.99%.

And, it applies if you have two or more late payments within 12 months. It can also apply if you fail to make the minimum payment on time or have a returned payment.

Get it here: https://www.americanexpress.com/us/small-business/credit-cards/simply-cash-plus-business-credit-card/44279

Capital One® Quicksilver® Card

Check out the Capital One® Quicksilver® Card. It offers flat-rate rewards of 1.5% on all purchases. There are no limits to the amount of cash back rewards that cardholders can earn. Also, the card has a $0 yearly fee.

New cardholders have a 0% APR on purchases and balance transfers for the first 15 months after opening the account. Then afterwards they have a 14.74 – 24.74% (variable) APR after that.

A cash bonus of $150 is available for those who make a minimum of $500 in purchases in 3 months of account opening.

Details

Also, cash back rewards do not expire for the life of the account. And there is no limit to how much you can earn.

This card also offers travel accident insurance. And you get an auto rental collision damage waiver. There are no foreign transaction fees. And there is extended warranty coverage.

Downsides are the flat reward rate, not allowing for any more than that. And the higher APR after the first 15 months.

Get it here: https://www.capitalone.com/credit-cards/quicksilver/

Build Business Credit Cards Credit Suite

Establish business credit fast with our research-backed guide to 12 build business credit cards and lines.

Outstanding Business Credit Cards with No Annual Fee: Smart Alternatives to Build Business Credit Cards

Uber Visa Card

Check out the Uber Visa Card. Uber is the very first ride-sharing service to offer a credit card, in a partnership with Visa and Barclays.

The card offers 4% back per dollar spent at restaurants, takeout and bars, including UberEATS. Also, earn 3% back on hotel, airfare and vacation home rentals. And earn 2% back on online purchases.

So, this includes retailers and subscription services like Uber and Netflix. And get 1% back on all other purchases. Each percent/point has a value of 1 cent. Redeem points for cash back, gift cards or Uber credits directly within the app.

By spending a minimum of $500 in the first 90 days, users can earn a $100 sign-up bonus. Cardholders spending at least $5,000 annually are eligible to receive a $50 credit toward online subscription services.

Details

If you pay your cellular phone bill with this card, you are insured up to $600 for cellphone damage or theft.

Cardholders are eligible for exclusive access to specific events and offers. Uber expects the majority of these offers to be available in major cities like New York, San Francisco, Los Angeles, Chicago and DC. There is no foreign transaction fee.

But there is no introductory rate. The APR is a variable 16.99%, 22.74% or 25.74%, based on your creditworthiness. Cardholders with less than stellar credit will be on the higher end of the range.

Also, there are restrictions on Uber credits. To redeem points as credits in the Uber app, accrue a minimum of 500 points, or $5. Cardholders can convert a maximum of 50,000 points, or $500, per day.

Get it here: https://www.uber.com/c/uber-credit-card/

Costco Anywhere Visa® Business Card by Citi

Not taking Uber? Then you’ll want to fill your gas tank somehow. Why not do so with the Costco Anywhere Visa® Business Card by Citi?

This card earns cash back with every purchase. Get 4% cash back on the first $7,000 spent on eligible gas purchases annually (1% after that). Earn 3% cash back at restaurants and on eligible travel purchases. Also, earn 2% cash back at Costco and Costco.com. And earn 1% cash back on all other purchases.

Keep in mind: the $0 annual fee is only for Costco members. And an active Costco membership is required. Cardholders will get access to damage and theft purchase protection, extended warranty coverage and travel accident insurance.

Also, there is no sign-up bonus offered with this card.

Get it here: https://www.citi.com/credit-cards/credit-card-details/citi.action?ID=Citi-costco-anywhere-visa-business-credit-card

Ink Business Cash℠ Credit Card

Check out the Ink Business Cash ℠ Credit Card. Companies can earn cash back with every purchase. Spend $3,000 in the initial three months from account opening. And you’ll get a $500 bonus cash back.

There is a $0 yearly fee with a 0% introductory APR for 12 months on purchases and balance transfers. Thereafter, the APR is a 15.24 – 21.24% variable.

The credit card comes with travel and purchase coverage benefits. So, this includes an auto rental collision damage waiver and extended warranty protection.

Details

Earn extra cash back on business categories. So, these include office supply stores, telecommunications, gas stations and restaurants.

Note: this credit card has a balance transfer fee. Pay 5% of the amount transferred or $5, whichever is more. Also, there is a foreign transaction fee of 3%.

Get it here: https://creditcards.chase.com/small-business-credit-cards/ink-cash

United MileagePlus Explorer Business Card

Get a good look at the United MileagePlus Explorer Business Card.

Earn 2 miles/dollar with United and at restaurants, filling stations and office supply stores. All other purchases get 1 mile/dollar. Earn a 50,000-mile sign-up bonus after spending $3,000 in the first three months from account opening.

Benefits include priority boarding, a free first checked bag for you and a companion on the same reservation.

Details

Also, get two United Club passes annually. And get hotel and resort perks including upgrades. In addition, get early check-in and late checkout. And get an auto rental collision damage waiver.

Also, get baggage delay insurance, lost luggage reimbursement, trip cancellation and interruption insurance. Finally, get trip delay reimbursement, purchase protection, price protection and concierge service.

After the first year, the card has an annual fee of $95. APR of 17.99% – 24.99%, based on creditworthiness.

Get it here: https://creditcards.chase.com/small-business-credit-cards/united-mileageplus-explorer-business

Starwood Preferred Guest® Business Credit Card from American Express

Another choice is the Starwood Preferred Guest Business Credit Card from American Express.

This credit card is for those who stay at Starwood Preferred Guest and Marriott hotels often. Get six points per dollar of eligible purchases at participating SPG and Marriott Rewards hotels.

And get four points per dollar at American restaurants, US filling stations, and on US purchases for shipping.

Also, earn four points to the dollar on wireless telephone services purchased directly from US service providers. For all other eligible purchases, get two points per dollar.

Details

Get 75,000 bonus points when you spend $3,000 in the initial three months of account opening. Benefits include free in-room premium internet access, Sheraton Club lounge access, and purchase protection.

Plus, you get car rental loss and damage insurance. And you get baggage insurance. There is also a global assistance hotline. And there is a roadside assistance hotline. And get travel accident insurance and extended warranty coverage.

The most significant issue is the yearly fee. There is a $0 introductory annual fee for the first year, then it’s $95 afterwards. Plus, there is no 0% introductory APR. Instead, there is a 17.74 – 26.74% variable APR

Get it here: https://www.americanexpress.com/us/credit-cards/business/business-credit-cards/spg-amex-starwood-credit-card

Build Biz Cards Credit Suite

Establish business credit fast with our research-backed guide to 12 build business credit cards and lines.

Unbeatable Cards for Jackpot Rewards: What’s Next After Getting Build Business Credit Cards

Chase Sapphire Preferred® Card

Have a look at the Chase Sapphire Preferred® Card for travel points.

You can get two points to the dollar spent on travel and dining at restaurants. And you can earn one point per dollar on all other purchases. Points can be redeemed for cash back, gift cards, or travel.

The card’s benefits include trip cancellation insurance, travel and emergency assistance services. They also include an auto rental collision damage waiver, purchase protection and extended warranty protection.

When you spend $4,000 in the first 3 months from account opening, you will get 50,000 bonus points. These points are worth $625 if you redeem them for travel through Chase Ultimate Rewards.

Details

You can get an unlimited two points per dollar for travel and dining at restaurants. Then afterwards get one point per dollar for all other purchases. Points will transfer equally to 13 leading frequent travel programs with partners. So, these include British Airways, Southwest Airlines, United, and Marriott.

There is no 0% introductory APR on purchases or balance transfers. The card’s standard APR is 17.74 – 24.74% variable. Also, the card has an annual fee of $0 introductory for the first year. And then it skyrockets to $95.

Get it here: https://creditcards.chase.com/rewards-credit-cards/chase-sapphire-preferred

Ink Business Preferred ℠ Credit Card

Get a look at the Ink Business Preferred Credit Card from Chase. Cardholders earn 3 points for every dollar spent on travel, shipping, internet, cable, phone and qualifying advertising with the card. So, this is up to $150,000 each year. And all other purchases earn an unlimited one point per dollar spent.

This is a Visa credit card.

Cardholders get benefits like purchase protection, trip cancellation or interruption insurance. They also get cellphone protection. And they get extended warranty coverage. And they get an auto rental collision damage waiver.

Details

Earn 80,000 bonus points when you spend $5,000 in the first 3 months from account opening. There is an annual fee of $95. You can add employee credit cards at no additional cost.

This card only offers 3 points per dollar to a limit of $150,000 a year. So, this is for travel, shipping, internet, cable, phone and qualifying advertising. All other purchases get an unlimited flat rate of one point per dollar. And there is no introductory APR

Get it here: https://creditcards.chase.com/small-business-credit-cards/ink-business-preferred

Hilton Honors American Express Ascend Card

Have a look at the Hilton Honors American Express Ascend Card, which earns hotel rewards points. Earn up to 12 points per dollar of eligible purchases at participating Hilton hotels or resorts.

Automatically get Hilton Honors Gold status. And this includes room upgrades when available, a 5th night free when you book a rewards stay of 5 nights or more.

And get free internet access and late checkout. It also includes a 25% bonus on base points earned with Hilton Honors.

This card has a variable purchase APR of 17.74 – 26.74%. There is an annual fee of $95.

Details

Cardholders can earn a 125,000-point welcome offer after making $2,000 in eligible purchases in 3 months from account opening. Earn a free weekend night award after making $15,000 in eligible purchases on your card in a calendar year.

Benefits include purchase protection. And there is extended warranty coverage. They also include car rental loss and damage insurance and travel accident insurance.

If you spend $40,000 on eligible purchases with the card in a calendar year, you can earn Hilton Honors Diamond status through the end of the next calendar year. This status includes all the benefits of Gold status.

It also includes a 50% bonus on base points earned with Hilton Honors and exclusive floor lounge access at select properties. But that is awfully high spending required for elite status. Only you can decide if that’s worth it.

Get it here: https://www.americanexpress.com/us/credit-cards/card/hilton-honors-ascend/

The Perfect Build Business Credit Cards for You

Your outright best business credit cards hinge on your credit history and scores.

Only you can choose which features you want and need. So be sure to do your homework. What is excellent for you could be disastrous for other people.

And, as always, make certain to build credit in the recommended order for the best, speediest benefits.

 

The post Get Terrific Build Business Credit Cards appeared first on Credit Suite.

How to Build an Asset Creation and Promotion Strategy to Set up Steady Traffic Sources

I’ve written a lot on how businesses need to embrace a new online growth strategy without depending on any *single* tactic (like search traffic, for example). There’s a popular belief that search engine traffic is the most reliable (and steady) source of web traffic – that’s something I don’t agree with. I’ve founded startups that… Read more »

The post How to Build an Asset Creation and Promotion Strategy to Set up Steady Traffic Sources appeared first on Paper.li blog.

Spend This Veteran’s Day Building Strong Business Credit and Finding Resources to Help You Build the Business of Your Dreams

As a veteran, your country owes you a debt of gratitude.  Unfortunately, it can be difficult to reacclimate to normal life after the trauma of service. Starting a business can be a great way to get back on your feet, and there are a ton of resources that can help.  These resources, coupled with opportunities opened by strong business credit, mean veterans have more support than ever before to help start and run their own businesses successfully.  F

Find Out Where to Look to Find Resources for Veteran Business Owners with or Without Strong Business Credit

Surprisingly, according the SBA findings released a couple of years ago, 2.52 million U.S. businesses are Veteran-owned.  That is 9.1%. To put it in perspective, almost 10% of the U.S. economy is made up of veteran owned businesses.  It seems, not only do veterans deserve our support for fighting for our country, but for helping to keep the economy running as well!

What frustrates you the most about funding your business? Check out how our free guide can help. 

In addition, the same report shows veteran-owned businesses, have 5.03 million people working for them.  What’s more, that’s an annual payroll of $195 billion. What does this mean? Surprisingly, it means that if veterans aren’t given a way to fund new business ventures, a significant section of the U.S. economy will be hurting.

Thankfully, there are loans, grants, and other resources available for veteran business owners.  Consequently, you have to know where to find them. Fortunately, we can help with that. While we can’t list them all, this should get you started.  

Business Loans for Veterans

First, the list of available business loans for veterans could go on forever.  We selected a few of the most popular to help you get your research started. 

Military Economic Injury Loans

This is an SBA loan that helps both veteran and current military reservists that own a business that suffered when they were called to active duty. As a result, if you own a small business that is having financial issues due to active military service on your part, you likely qualify.  The MREIDL, (Military Reservist Economic Injury Disaster Loan) Program will offer 4% interest loans to help the business stay afloat. 

Remember, it is available to business owners that are also veterans for only up to one year after release from active duty.  Terms are available for up to 30 years. Remember, there is a collateral requirement for loans over $50,000. Also, by law the SBA has to make a determination that the business will not recover without help from the government. 

Veterans Business Fund

strong business credit Credit Suite

Another great option, the Veterans Business Fund, is a newer resource for veterans.  Those are looking to fund a new business or an expansion, and those that want to purchase an existing business or franchise, may find help with this fund. 

It’s funded by donors, and seeks to provide veteran business loans with manageable terms. Per their website, these loans are for veterans, and are non-interest bearing to the extent permitted by law.

You cannot finance a business through VBF alone however.  The program offers loans only in conjunction with personal equity and the funding of an outside banking institution.

Streetshares

StreetShares is veteran owned and run.  They have a passion for funding veteran business loans, though they help those who are not veterans as well. Operating as an online auction marketplace, they connect entrepreneurs directly to investors with an interest in small businesses.

They also provide other information and resources for veterans online. They claim to offer funding approvals in just a few hours. Find out more about StreetShares in this review. 

7-Eleven Veterans Franchising

Along with several other companies, including UPS, 7-Eleven is offering benefits to veteran franchisees.  Eligible business owners can receive up to 20% off the franchise fee.  In addition, they may receive up to 65% financing through 7-Eleven, along with other special benefits. 

What frustrates you the most about funding your business? Check out how our free guide can help. 

SBA Express Loan Program

In the past, the SBA’s Patriot Express Loan program was top notch for veterans.  Unfortunately, that program has ended.  However, veterans can still apply for the regular Express Loan program. SBA Express loans are available up to $350,000, and decisions are made in up to 35 hours.  This is a far cry from the 5 to 10 days SBA loans regularly take for decisions.   

One benefit for veterans is that loans through this program, for those who have served, will have their guarantee fees waived. This is part of the SBA VA Program.  

Hivers and Strivers

This is an angel group that specializes in startups run by U.S. military academy graduates. West Point, Annapolis, the Air Force, and the Coast Guard are all involved. Find out more here. 

Other Options for Veterans with Strong Business Credit and Personal Credit

Although the following lenders do not focus specifically on veterans, they offer small business loans that can supplement what is obtained from veteran resources. 

LendingClub

LendingClub works by giving investors a fixed income alternative by investing in personal loans, while offering borrowers loans with investors’ funds.

It’s a simple process. Just enter how much you want to borrower.  Next, choose the type of loan you are looking for. Then, enter some very basic information. You’ll get two different offers at least. One will have a lower payment but a higher interest rate. The other will be vice versa.

Loans range in amounts from $1,000 to $40,000 with an origination fee of 1% to 6%. This fee comes off the top before funds go into the borrower’s account. That means if you have a $1,000 loan with a 1% origination fee, you will only receive $990 in your account. You still have to pay back the full loan amount of $1,000 of course.

Interest rates range from 6.16% to 35.89%. Repayment terms are typically monthly, spanning over 3 to 5 years. After approval, it can take up to a week to receive loan funds.

The minimum credit score for a loan is 600. In addition, you must have a credit history that goes back at least 3 years.  If you do not have the personal credit needed, they may take strong business credit into consideration.

Fundation

The great thing about Fundation is that they will report payments to the business credit reporting agencies.  In return, this helps you build strong business credit. They offer a streamlined, automated process. Originally, they only had invoice financing.  However, now they offer a line of credit service as well. Repayments are automatic, meaning they draft them electronically.  This happens on a weekly basis. One thing to remember is that you could have a repayment as high as 5 to 7% of the amount you have drawn currently, since the repayment period is comparatively short.  

Loans range from $100 to $100,000.  The max initial draw is $50,000 however.   They do have some products that go up to $500,000.  There is no minimum credit score requirement, but they do require at least 3 months in business, $50,000 or more in annual revenue, and a business checking account with a minimum balance of $500.

As I said, they report to Dun & Bradstreet, Equifax SBFE, PayNet, and Experian, which makes them a great option if you want to build strong business credit.

Funding Circle

Funding circle is one of your best options if you are looking for a low APR.  They offer fixed rate term loans. The credit score requirement is 620 or above.  Still, they make take a strong business credit score into consideration if you do not quite meet that.  They do not have a minimum revenue requirement, but they do require at least 2 years in business. Find out more in our Funding Circle review. 

Veteran Funding Options that Do Not Require Strong Business Credit

In addition to loans, there are many grant opportunities for veteran business owners.  They are not all right for every veteran, but if you are eligible, they can be great supplemental funding. 

VetFran Business Grant Fund

This is a grant opportunity for those that have been awarded a franchise through the IFA VetFran program.  Go here to find out more. 

USDA Veteran and Minority Farmer Grant

This is a grant that helps veterans get started in the farming industry. 

StreetShares Commanders Call Veteran Business Award

The StreetShares Foundation offers this award to 3 veteran business owners each year. 

There are three prizes as follows: 

  • 1st Place: $15,000
  • 2nd Place: $6,000
  • 3rd Place: $4,000

To apply, a business must meet the following requirements:

  • The applicant has to be a veteran or reserve or active duty member of a branch of the United States Armed Forces, or a spouse of an armed forces member. 
  • They must be at least 21 years old.
  • The business must be legally incorporated or a formal partnership or sole proprietorship.
  • There must be some sort of social impact on the veteran or military community either in conjunction with or in addition to the primary business function.

In the end, the foundation will choose 5 to 10 finalists.  They base their decision on the social impact of the business idea.  Additionally, they consider how the business will use award funds, and the social impact of that use.  The fit of the product market, the history of the team, and the history of the company also play into the decision. 

Lastly, once the finalists are set, they post a list on the website and the public votes on which businesses will receive prizes!

Resources that Provide Services Other than Funding Veteran Business Owners

Thankfully, there are many resources available to veteran business owners that provide support not related to business funding. 

Dept of Veterans Affairs

This is the government department set up to help ensure veteran business owners get their fair share of the pie.  That includes government contracts. Find out more at: https://www.va.gov/osdbu/programs/index.asp

Veterans Business Services

Veterans Business Services, or VBS, offers the following: 

  • Self-employment pre -feasibility assessment opinion letters
  • VA vocational rehab
  • Business plan development and coaching for service-disabled veterans
  • Feasibility studies for small business concepts

VBS offers all of this and more.  Go here for more about these and other ways they can help service-disabled veterans. 

VetBiz

The VetBiz program helps veterans “transition military skills into small business success” per their website.  Similar to other programs, they offer training, coaching, and consulting. Also, they partner with the Small Business Administration for the Boots to Business program.  More information can be found here.

Syracuse University’s Institute for Veterans and Military Families

Honestly, there are many programs at Syracuse University for veterans and their families.  Read about all of them here. However, one of the newest programs is an outstanding opportunity for veterans that want to start their own business.  It’s called EBV Accelerate, and it consists of 3-phases. 

What frustrates you the most about funding your business? Check out how our free guide can help. 

Self-stated, the goal of the program is to give veterans business tools and coaching to rocket their business to sustainable growth. To qualify, you must be a veteran business owner that has been in business for 3 years or more.  Of course, the veteran must have at least 50% ownership. 

In addition, there must be active duty with honorable discharge or general discharge under honorable conditions. Also, 5 people have to be full time employees.  It’s short, lasting a little over two weeks. The first phase, Phase 1, is 2 weeks of online work. Next, Phase 2, is a 3-day residency course. Phase 3 consists of resources to support business growth.

More Resources for Veteran Business Owners

For more help, here are a few more resources that can help veteran business owners in a number of ways.

How Can Strong Business Credit Help?  

Truthfully, strong business credit can help any business owner, including veterans, get the funding they need.  Consequently, if you don’t have business credit, now is the time to start building it. In reality, even though it is easiest to start at the beginning, you can start at any time.  Find out more about how to start and build strong business credit here.

Strong Business Credit Can Help You Access More Resources for Veterans

There are resources available to help veteran business owners, but you have to know where to look.  Most of them will not work singularly, but rather they will work together to help ensure the business has the funding and other support necessary to be successful. 

The post Spend This Veteran’s Day Building Strong Business Credit and Finding Resources to Help You Build the Business of Your Dreams appeared first on Credit Suite.

Build or Improve Business Credit with Private Business Loans

How Private Business Loans Can Help Build or Improve Business Credit The concepts of business credit and private business loans are new to many business owners.  The terms are discussed more often now than they were 10 years ago.  Still, many are unfamiliar with what they are and how they can play into the success … Continue reading Build or Improve Business Credit with Private Business Loans

Build or Improve Business Credit with Private Business Loans

How Private Business Loans Can Help Build or Improve Business Credit

The concepts of business credit and private business loans are new to many business owners.  The terms are discussed more often now than they were 10 years ago.  Still, many are unfamiliar with what they are and how they can play into the success of your business.

For many looking to start a business, they know no other way than to get started with personal loans on their personal credit. Others understand the concept of business credit, but are unsure how to get it.  Then there are those that have found private loans, but aren’t sure how to best utilize them to build or improve business credit.

We hope to answer all these questions and more, specifically those relating to using private loans to build and improve business credit.

What Is Business Credit?

Business credit is credit that is in the name of your business.  It isn’t connected to the business owner in any way.  It is in the business name, the business contact information, and the business EIN rather than the owner’s SSN.

If you have business credit, you can use it to apply for funding for your business.  The debt and the payments will not be on your personal credit report at all. The problem is, most traditional lenders rely on the personal credit score most heavily, even if a business does have business credit. This is where private business loans can be helpful.

What are Private Business Loans?

Private business loans are loans from companies other than banks, also called alternative lenders.  Many of these have popped up in the past decade as entrepreneurship has become more prevalent.  The need for a financing option from institutions other than traditional banks has encouraged this increase.

There a few benefits to using private business loans over traditional loans.  The first is that they often have more flexible credit score minimums.  Even though they still rely on your personal credit, they will often accept a score much lower than what traditional lenders require. Another benefit it that they will often report to the business credit reporting agencies, which helps build or improve business credit.

The trade off is that private business loans often have higher interest rates and less favorable terms.  In the end though, the ability to get funding and the potential increase in business credit score can make it well worth it.

Find out why so many companies are using our proven methods to improve their business credit scores.

How Can You Use Private Business Loans to Improve or Build Business Credit?

While not all private, or alternative, lenders report to the business credit reporting agencies, some do.  These are the ones you want to work with. As they report your on-time payments, your credit will grow.  They must report to Dun & Bradstreet, Experian Business, Equifax Business, or some other agency that reports business credit.  Otherwise it won’t work.  Not all private lenders will do this.  You have to ask.

There are some lenders that are known to report to the business credit agencies however.

Which Private Lenders Report?

As a general rule, you simply have to research lenders to determine whether or not they report to the business credit reporting agencies.  Sometimes this is as simple as asking them who they report payments to.  Here are a few that we know oft to get you started.

Fundation

Fundation offers an automated process that is super-fast. Originally, they only had invoice financing. Then they added the line of credit service. Repayments are automatic, meaning they draft them electronically.  This happens on a weekly basis.  One thing to remember is that you could have a repayment as high as 5 to 7% of the amount you have drawn, as the repayment period is comparatively short.

You can get loans for as little as $100 and as high as up to $100,000, but the max initial draw is $50,000.   They do have some products that go up to $500,000.  Though there is no minimum credit score requirement, they do require at least 3 months in business, $50,000 or more in annual revenue, and a business checking account with a minimum balance of $500.

Fundation reports to Dun & Bradstreet, Equifax, SBFE, PayNet, and Experian, making them a great option if you are looking to build or improve business credit.

BlueVine

The minimum loan amount available from BlueVine is $5,000 and the maximum is $100,000. Annual revenue must be $120,000 or more and the borrower must be in business for at least 6 months. Personal credit score has to be at least 600. It is also important to know that BlueVine does not offer a line of credit in all states.  You can find out more in our review here.

They report to Experian.  They are one of the few invoice factoring companies that will report any business credit bureau.

private business loans Credit Suite2

OnDeck

With OnDeck, applying for financing is quick and easy. Apply online, and you will receive your decision once application processing is complete. Loan funds will go directly to your bank account. The minimum loan amount is $5,000 and the maximum is $500,000.

There is a personal credit score requirement of 600 or more.  Also, you must be in business for at least one year. There is an annual revenue requirement of at least $100,000 as well. In addition, there can be no bankruptcy on file in the past 2 years and no unresolved liens or judgements.

OnDeck reports to the standard business credit bureaus.

The Business Backer

The Business Backer offers a product they call FlexFund Line of Credit.  Funds range in amount from $5,000 to $240,000, and draws can be repaid on either a daily or weekly basis.

They report to Dun & Bradstreet and Equifax.

What Are Some Other Ways to Build Business Credit?

There are other ways to get accounts reporting on your business credit as well.  One option is to look at the regular payments you make already.  Do you pay rent?  Do you pay telephone, internet, or utility bills?  Ask your landlord and utility providers to report your payments to the business credit reporting agencies.  Of course, they do not have too.  However, some will if you ask.  This is a way to get accounts reporting without taking on new debt.

Another option is to talk to merchants you already do business with.  If you have been working with them for a while, there is a chance they will extend credit.  Ask them if they will extend credit and report to the business credit agencies.  Again, they may not do it, and they do not have to.  It never hurts to ask though.  You’ll never know until you do.

These two options are quick and easy ways to start to build business credit in addition to private business loans.  There is another way however, and you can utilize it at the same time as you do the private business loan avenue. It’s called the vendor credit tier.

How to Use the Vendor Credit Tier and Private Business Loans Together to Build Credit Faster

The vendor credit tier is made up of starter vendors that will offer invoices with net terms, and then report payments on those invoices to the business credit reporting agencies.  These vendors sell things most businesses use every day.  This means all you have to do is buy the things you already need, pay the invoice, and watch you score grow.

Not all vendors are starter vendors.  True starter vendors will offer net terms without a credit check so that you can get started with them before you have any business credit to speak of.  Instead, they look at things like time in business and annual revenue to determine eligibility.  Some of the easiest vendors to get started with include:

●       Grainger Industrial Supply

Grainger sells power tools, pumps, hardware and other things. In addition, they can handle maintenance of your auto fleet. You need a business license and EIN number to qualify, as well as a D-U-N-S number from Dun & Bradstreet.

You can apply by fax or over the phone. If you need less than $1,000 in credit, you only have to have a business license for approval. For over $1,000, you will need trade and bank references.

If you are just starting out and do not have references, the $1,000 is plenty to get you started building your business credit.

●       Uline Shipping Supplies

Uline reports to Dun & Bradstreet and carries shipping boxes, trucks, dollies, janitorial supplies, and more. Since they report to D&B, you have to have a D-U-N-S number before you get started with them. They will also ask you for a bank reference and two other references. Initially, you may need to prepay. After that, they are likely to approve you for Net 30 terms.

Find out more about Uline here.

●       Quill Office Supplies

Quill is the ultimate starter vendor and a mainstay in the vender credit tier. They sell office supplies as well as cleaning and packaging supplies. Products range from office supplies to office furniture, and even janitorial supplies.

They report to D&B. If you do not already have a D&B score, you will have to place an initial order first. Generally speaking, they establish a 90-day prepay schedule, and if you order each month for three months, they will most often approve you for a Net 30 account.

Find out why so many companies are using our proven methods to improve their business credit scores.

How to Keep Building Business Credit

Once you have a private business loan or two, as well as some starter vendors and other merchants reporting, you need to keep an eye on your credit report.  Credit monitoring is vital to the process of building business credit.  Mistakes on your report can slow progress significantly.  By looking at your credit regularly, you can see which accounts are reporting and ensure that the information being reported is accurate.

There are a few options when it comes to monitoring your business credit.  Unlike personal credit monitoring, it isn’t free.  However, we can show you how to do it for cheaper than what the credit agencies themselves will offer.

Credit Monitoring with the Big Three

D & B provides Credit Signal, which is a means to track your credit score by having the reports come directly to you, for a price.

Equifax offers a risk monitoring service as well.  It is convenient as it enables reports to come directly to you. If you don’t wish to pay for continual reports, you can submit an alternative request for a one-time Equifax report.

Experian provides similar services, with options for continual monitoring or one-time reports.

Prices for individual reports from each vary, with Experian and Equifax costing about $19.99 each. D&B ranges from $49.99 to $99.99.

Save money by monitoring your credit on a regular basis with Credit Suite.  We can help you monitor business credit at Experian and D&B for only $24/month. See: www.creditsuite.com/monitoring.

What Do You Do with the Information?

Update the information if there are errors or the info is incomplete. At D&B, you can do this by going to: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm.For Experian, to to:www.experian.com/small-business/business-credit-information.jsp.  If you need to deal with Equifax, go here: www.equifax.com/business/small-business.

If there are inaccuracies in the credit information, you need to dispute them. Errors in your credit report(s) can be fixed. However, credit agencies normally want you to dispute in a particular way.

Disputing credit report mistakes generally means you send a paper letter with duplicates of any supporting documents like receipts or cancelled checks. Never mail the original copies.

Dispute errors on your small business’s Equifax report by following the directions here: www.equifax.com/small-business-faqs/#Dispute-FAQs.

You can dispute inaccuracies on your business’s Experian report by following the directions here: www.experian.com/small-business/business-credit-information.jsp.

For D&B’s PAYDEX Customer Service, use the phone number is here: www.dandb.com/glossary/paydex.

Find out why so many companies are using our proven methods to improve their business credit scores.

You Can Build and Improve Business Credit with Private Business Loans

Private business loans can definitely help you build business credit.  However, you must choose lenders that will report your payments to at least one business credit agency.  There are more that what we have listed.  Be sure to do your own research to find the best options for your business.

Private business loans are just one tool to help you build business credit.  There are many tools that you can stick in your tool box that will help you along the way.  The vendor credit tier is one, but you can also ask those providers that you already make payments to if they will report.  This can help you build business credit even faster.

The post Build or Improve Business Credit with Private Business Loans appeared first on Credit Suite.

4 Reasons Your Business Needs a Card to Build Small Business Credit History

What is Small Business Credit History and Why Do You Need It?

In the excitement of starting a business, and then the ensuing chaos of running a business, many business owners do not consider that they need to actively build small business credit history.  It is likely in fact, that if they stopped a minute to think about it, they would find that they imagine it is building on its own in the daily course of things.  After all, you do not have to do anything to establish a personal credit history.  You simply get credit, make payments (or not), and your personal credit history builds as a function of the financial choices you make.

This is not how it works with business credit.  In fact, unless you make some very active, purposeful choices, it is possible to own and run a business for years and never build business credit. It’s unfortunate as this can be a tragic mistake for your business.  The problem is, most business owners do not even realize it is something they need to be doing.  They do not know that to build small business credit history, they have to actively work toward it.  If they do know, they do not understand how important it is.

We are going to answer both questions.  First, why is it important? Next, how on earth do you do it?

 Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

4 Reasons Why You Need to Build Small Business Credit History

While it isn’t hard to imagine why credit history itself is important, it can be difficult to grasp why a business needs to build small business credit history separate from that of its owner.  Here are just four reasons why.

Protect Your Personal Finances

The greatest benefit to the business owner is that when a business has a credit history of its own, the owner’s personal finances are better protected.  You might think that if business debt is in the business name, you as the owner are not liable for it.  That is not the case, unless you follow some very specific steps.

The truth is, some lenders will hold you liable anyway.  There are a number of lenders however, especially credit card companies, that will extend debt to the  business alone if it is set up as a funable entity.  In these cases, the owner’s credit will not change in relation to what happens with that debt.  The account will only show up on the business credit report.

Allow for Better Rates and Terms

As I said before, some check personal credit no matter what.  However, if you do not have great personal credit, but your business credit is good, you may be able to negotiate for better terms and rates despite a lower personal credit score.  It will not protect your personal credit completely, but it can still do you some good.

build small business credit history Credit Suite2

Increased Borrowing Capacity

Businesses have a greater credit capacity than individuals for a number of reasons.  The main reason is the increased income from business activities.  This is important, as the credit needs of a business are significantly higher than those of individuals.

Trying to finance a business on personal credit capacity is dangerous.  Business spending is much higher than personal spending by nature, and personal credit limits are much lower than business credit limits.  Often, personal credit can’t hold up to business spending.  If it can, then balances hover at or near credit limits, causing a high debt-to-credit ratio and thus a lower personal credit score even if you make payments on time.

Increase the Value of Your Company

Even if you are not thinking of selling your company, ever, you never know what can happen.  If you build your  business credit score now, it will go with your company even if the business changes owners.  Anyone who buys your company will also get its credit history and benefit from the hard work you put into building it.

 Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

How Do You Build Small Business Credit History?

Now that you understand why you need to do it, you need to know how to build  business credit.  It takes time.  It’s a process.  The first step is to separate your business from yourself.  This will ensure your business accounts are reporting to your business credit history and not your personal credit history.

Business credit is credit in a business’s name. It doesn’t link to a business owner’s individual credit, not even when the owner is a sole proprietor and the only employee of the company.

Build Small Business Credit History: Incorporate Your Business

The best place to start is at the beginning.  However, if you are already up and running, it’s never too late.  The first thing you must do is formally incorporate your business.  This means organizing as a corporation, S-corp, or LLC.

The option you choose will depend on a number of variables specific to you and your business.  The two main questions to ask yourself are:

  • How much personal liability protection do you want or need?
  • How much do you want to spend to incorporate?

Each option offers different levels of protection and expense, so it just depends on which one works best for you and your business.  They each offer the separation you need to build small business credit history.

Build Small Business Credit History: Separate Contact Information

Your business absolutely must have an address, phone number, and email address that is different from yours as the owner. The phone number should be through a toll-free exchange and listed in the 411 directories.  Do that here. Your email address cannot be from a free service.  That will not work. You need to have an email address that has the same URL as the business website.

Speaking of websites, yes, you need one for your business.  Not only that, but it needs to be a good one.  If it looks sloppy or unprofessional, it could do more harm that good.  Hire a professional to ensure it is done properly, and spring for paid hosting with someone like GoDaddy.  Free hosting does not look professional.

Build Small Business Credit History:  Separate Bank Account

Your business needs a business bank account.  Running business income and expenses through your personal accounts can cause a host of problems.  Tax time can be especially daunting when you have to separate business expenses from personal ones.  Beyond that however, many vendors and credit card companies require a business bank account before they will extend business credit.

Build Small Business Credit History: Identifying Numbers

There are two identifying numbers that your business will need to build business credit history.  The first is an EIN.  This is an identifying number for your business similar to how social security numbers function for individuals.   Get it for free on the IRS website.

Next, your business needs a D-U-N-S number.  This one comes from Dun & Bradstreet.  It is free as well, but they will try to sell you a ton of other services while you on their site.  You do not need anything else.  Just get the free number.

Without this number you cannot have a credit file with Dun & Bradstreet.  Since they are the largest and most commonly used business credit reporting agency, you definitely need to have the number.

Build Small Business Credit History: Get Accounts Reporting

The next obstacle to overcome is how to get accounts reporting.  This one seems hard on the front end, but truly it isn’t once you know the secret.  That secret is the vendor credit tier.

Vendor Credit Tier

First you must build tradelines that report. This is also called the vendor credit tier. Then you’ll have an established credit profile, and you’ll get a business credit score. And with an established business credit profile and score you can start to acquire credit in the retail and cash credit tiers.

These vendors sell the things you already buy all the time, like marketing materials, shipping boxes, outdoor workwear, ink and toner, and office furniture. Many of them will extend net terms on invoices without a credit check, and then report those payments to the business credit reporting agencies.

These are merchants that grant an approval with very little effort. You want 5 to 8 of these to move onto the next step, which is the retail credit tier. But you may have to apply more than one time to these vendors. This is to prove you are responsible and pay on time. Here are some of the most commonly known and easiest  vendors to get started with  in the vendor credit tier.  They are known as starter vendors.

Uline

This is a true starter vendor that sells shipping, packing, and industrial supplies.  You have to have a D-U-N-S number. So Uline will ask for 2 references and a bank reference. The initial few orders may have to be prepaid to first get approval for Net 30 terms.

Quill

This is another starter vendor. They sell office, packaging, and cleaning supplies.  So they also report to D&B and Experian.

Since Quill reports to two separate credit reporting agencies, you get two credit experiences with them. Place an initial order first unless the D&B score is developed.  In most cases they put you on a 90-day prepayment schedule. If you order items monthly for 3 months, they usually approve you for a Net 30 Account.

Grainger Industrial Supply

Grainger sells safety equipment, plumbing supplies, and tools.  They report to D&B, and you need a business license, EIN, and a D-U-N-S number.

For less than a $1000 credit limit they approve almost anyone with a business license.

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the business credit agencies, then move onto the retail credit tier. These are credit cards connected to specific businesses like Office Depot and Lowes.

Fleet Credit Tier

After the retail credit tier comes the fleet credit tier. These are businesses such as BP and Conoco. Use this credit to buy fuel, as well as to fix and maintain vehicles.

 Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Cash Credit Tier

After the fleet credit tier comes the cash credit tier.  These are service providers like Visa and MasterCard that are not attached to a specific store.

The thing about trade accounts in the vendor credit tier and the credit cards in the retail, fleet, and cash credit tiers is that they report to the business credit reporting agencies (CRAs).  Not all lenders will do that.  You definitely need to work through the tiers with the credit card companies if you are going to build small business credit history.  This is the only way to do it.

Keep an Eye on Your Credit History

You’ll want to watch both your business credit reports and your personal reports to make sure accounts are reporting on the right one.  While you are at it, keep an eye out for mistakes, and keep information updated.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs. So see: www.creditsuite.com/monitoring.

Your Business Needs a Card to Build Small Business Credit History

Now you understand what business credit is and why you need it.  Why though, do you need a credit card to build small business credit history?  Here’s why.  First, it will build faster with a credit card.  Building business credit with vendor accounts only would be extremely slow.

Term loans rarely help build business credit as most lenders do not report to business credit agencies.  They typically only pay attention to the owner’s personal credit, though they may take business credit into account if it can help secure the loan.

Some alternative lenders will report to the business credit agencies, but they will not extend credit unless you already have a solid business credit score.  That makes it hard to use them to build business credit.  The key to being able to build business credit history lies with the vendor credit tier and business credit cards.

The post 4 Reasons Your Business Needs a Card to Build Small Business Credit History appeared first on Credit Suite.