Tag: Business

The Top 10 Industries Getting Business Credit, And How You Can Too

All the Cool Kids are Getting Business Credit, Here’s How You Can Get It Too

Getting business credit isn’t necessarily hard, but it does take some effort and planning.  There is a process, and you have to work for it.  Who gets business credit?  How can you get business credit?  Do you even need company credit?  These are all perfectly normal questions, as many entrepreneurs think they have to fund their business based solely on their personal credit.  This just isn’t the case however.

For many, business credit is like the fairy godmother of the business world.  It can take your company and put it in the elite class of businesses which are fundable on their own merits.  While all types of businesses can get business credit, some are getting it more often than others.

Check out how our reliable process will help your business get the best business credit cards.

Top 10 Industries Getting Business Credit

1.      Hospitality

Not so much hotels, but more like the newcomers similar to AirBnb, HomeAway, and VRBO. This is an innovative way to stay when you travel. And more like these are coming along.  It gives consumers options. Consumers like options.

2.      Real Estate

This refers more to house resale, or house flipping, than other types of real estate.  Before the last recession this was big news, and then the bubble burst.  It’s back and stronger than ever for now however.  Of course, there is always the lingering potential pin poke of the next recession looming nearby, but for now, that is not stopping them.

3.      Long Haul Truckers

There will always be a need for an affordable way to get things from one place to another, and long-haul truckers are just that.

getting business credit credit suite 2

4.      Finance

Not just any financial business, but those related to credit building are building company credit right now.  Businesses that help companies and individuals build their credit score are a big deal.

5.      Food Delivery

Services that offer food pickup and delivery services such as DoorDash and GrubHub  are growing and expanding, and they are getting business credit to do it.

6.      Energy Conservation

Energy conservation is huge right now, and companies that are working toward that end are establishing business credit to help make it happen.

7.      Health

There are two factions of the health industry building business credit frequently right now.  Data and file management is in the news as there is a push for records consolidation across the board to ensure patient files are as comprehensive and complete as possible.  Personalized health is also a hot topic, as more and more providers are realizing health care does not have a one size fits all solution. Business credit is helping providers in both areas thrive.

8.      Entertainment Technology (Apps, gaming, streaming)

Netflix, Hulu, and all the other streaming apps prove that this isn’t an industry that is going anywhere any time soon.  Add gaming and the hundreds of new apps that pop up in any given month and you can see why this is an industry that is getting business credit.

9.      Consumer Retail

Consumer retail companies that focus on online retail, or a combination of online and brick and mortar, are using business credit as online retail solidifies its foothold in the retail industry.

10.  Commercial Construction

Contractors working to build commercial property are busy right now.  Business credit helps them get a leg up on the competition.

11.  Bonus!!!!  The Cannabis Industry

Whether it is edibles or CBD products, there is no doubt this industry is growing fast.  Specialty stores selling a variety of CBD oil products are opening on virtually every corner, and with legalities changes frequently from state to state, other shops are popping up too.

While these are the top industries getting business credit, they aren’t the only ones.  If your company doesn’t fit into one of these, you can still join in the fun.  How?  Why?  Do you need or even want to join the crowd?  The answer to the first question is a resounding yes!  You definitely need to.  As far as wanting too, I think you will, if you don’t already.

Check out how our reliable process will help your business get the best business credit cards.

Why Are These Guys Getting Business Credit?

You might think business credit is unnecessary because your personal credit is fine. Maybe you don’t know anything about business credit and think you do not have a chance because your personal credit is shot.  If you have bad personal credit, you can absolutely build business credit that will fund your business.  Suppose your personal credit is fine.  Here is why you need business credit anyway.

Using business credit to handle your finances means personal finances will not be affected by company transactions. If your business goes bust, your personal credit score will stay intact, and you will not be personally liable for your business debts.

Thinking it isn’t an issue because your business is doing fine is a mistake.  Paying business expenses with personal credit cards maxes cards out quickly.  Even if you pay off large chunks every month, the rotating balance is likely very near the limit.  This is because business expenses are large, and personal credit cards tend to have lower limits than biz credit cards.

This affects your debt-to-credit ratio, which can negatively affect your personal credit score even if you make payments on time.  Business credit protects your personal credit score and ensures you have access to the funds you need to run your business.

How to Go About Getting Business Credit

Now that you know why you want to join the crowd that is establishing business credit, you can get busy.  Here is what you need to do.

Apply for an EIN

This is an identifying number for your business that works similar to your SSN.  You apply on the IRS website, and it is free.  Use it on business credit applications instead of your SSN.  You may still need to provide your SSN for fraud prevention, but it will not be used to access your personal credit score.

Incorporate

A business must be incorporated to have business credit. You can choose between forming a corporation, an S-corp, or an LLC.  The idea is that your business needs to be established as an entity separate from yourself in every way.  Incorporation not only accomplishes that, but it also offers you some liability from corporate debts.

Each option varies in cost and amount of protection it offers.  Which one will work best for you depends on your specific business.  Any of them will serve the purpose of establishing your corporation separately for purposes of building corporate credit though.

Contact Information

Your business needs to have an address and phone number that is different from your personal address and telephone number.  The phone number should be toll free, and the business should be listed in the directories with its own contact information.

Website and Email

All businesses these days need a professional, user friendly website to be able to compete.  You also need an email address that is specifically for the business.  Do not use a free email service such as Gmail or Yahoo.  The business email address should use the same URL as the business website.

Bank Accounts

Open a separate business bank account and begin running all business financial activity through that account.  You can pay yourself from this account, but do not run personal expenses through it. Not only will this help separate your business from yourself, but it will also save a lot of time when tax season rolls around.

Getting Business Credit: Get a D-U-N-S Number

This is another identifying number, but it is only used by Dun & Bradstreet.  They are the largest and most commonly used business credit reporting agency, so having a credit report with them is a must.  You can get a DUNS number for free on their website, but they will try to sell you other services.  You do not need them.  Just get the free DUNS number.

Build Business Credit from the Ground Up

Once you have your business separated from your personal information and finances, you can get to work building business credit.  It may seem overwhelming at first.  This is because if you start applying for business credit cards and you do not yet have a credit score attached to your business, you are going to be turned down.  You have to have credit to get credit, and it feel like a vicious cycle.  We know how to break the cycle however.  There is a crack in the circle. We know the “in.”

The Vendor Credit Tier

The vendor credit tier is your way in.  These are vendors that will extend net 30 terms on invoices and then report your payments to the credit agencies.  Once they start doing that, your business credit score will be established and grow from there.

Check out how our reliable process will help your business get the best business credit cards.

You may have to make a few initial purchases with these vendors before you can get net 30 terms.  Some require a minimum amount of time in business, and there may be a minimum income requirement if you do not have business credit.  There are dozens of them with varying requirements.  What they do not require, however, is a credit score.  This is how you start building business credit.

Working Through the Credit Tiers

Once you have 7 to 10 accounts reporting from the vendor credit tier, your score should be high enough to allow you to gain approval from creditors in the retail credit tier.  These are credit cards attached to specific stores such as Best Buy, Amazon, and Office Depot.  There are hundreds of these cards available with varying requirements.  Apply for a few, use them, and as you have more and more accounts reporting your on-time payments, you will qualify for more.

After you have several accounts reporting from the retail credit tier, you will qualify for cards in the fleet credit tier.  These cards are issued by companies like Shell, Fuelman, and WEX to be used for fuel purchases and automobile repairs.

Then, last but not least, the grand prize.  When you have enough accounts reporting from each tier, and if you are keeping current on all your payments, your score will be strong enough for the cash credit tier.  These are the general credit cards such as MasterCard and Visa that are not attached to a specific store.  They typically have higher limits and more rewards options.

From there, the sky’s the limit.  Your business will qualify for all the business credit it needs to continue to not only run, but thrive and grow.

A Few Ways to Use Business Credit to Your Benefit

Once you have all that business credit, what do you do with it?  The short answer is, whatever you want.  That is very broad of course.  There are some scenarios where it can be especially helpful however.

Take Advantage of Special Pricing

Having business credit means you can take advantage of special pricing on inventory.  For example, if you can get a 20% discount on a bulk order, and it is either a big seller or something you use regularly, the savings could be significant.  However, you need the funds available to make the purchase.  Company credit lets that happen without depleting cash reserves.

Float a Cash Gap

Cash gaps can occur for many reasons.  The most common include lags in invoice collection and seasonal gaps.  Company credit can allow you to cover those cash gaps without having to seek additional financing.

Reduce Cost

Used effectively, paying company expenses with company credit cards can actually reduce overall expenses.  I know it sounds totally crazy considering you have to pay interest.  Here how it could work, however.

Imagine you have a business credit card that offers 2% cash back on purchases.  If you make your regular purchases on this card and pay them off each month, you avoid paying interest and reduce the cost of those expenses by 2%.

Expansion and Growth

If you need funds to expand and grow, business credit can help you access those funds.  You may not want to fund a large expansion project with credit cards. But using charge cards wisely can help you build the business credit you need to get a line-of-credit or a traditional loan for a larger project.

You Could Be Getting Business Credit Too

When you read the list of top 10 industries getting business credit, you may think that you don’t stand a chance if you are not working in one of those industries.  If you follow the steps listed above however, you can definitely get credit for your business that is not attached to your personal credit.  This will not only ensure you can access the funds you need to run and grow your business, but also protect your personal finances should your business finances suffer. It’s a win-win, and all you have to do is trust the process.

 

The post The Top 10 Industries Getting Business Credit, And How You Can Too appeared first on Credit Suite.

Which Credit Cards Will Help Build Business Credit? The Reliable Answer

Take Advantage of Our Research on Which Credit Cards Will Help Build Business Credit and Reliably Make Your Company Financially Stable

Do you know which credit cards will help build business credit? We inspected a substantial number of company credit cards; here are our favorites.

Per the SBA, small business credit card limits are 10 – 100 times that of personal cards! This shows you can get a lot more money with small business credit.

And this also means you can have personal charge cards at shops. So you’ll now have an additional card at the same stores for your small business.

And you won’t have to put up collateral, cash flow, or financial information to get small business credit.

Which Credit Cards Will Help Build Business Credit: Credit card Advantages

Benefits vary, so make certain to pick the reward you prefer from this array of choices.

Which Credit Cards Will Help Build Business Credit: These Will!

Know which credit cards will help build business credit.

Wells Fargo Business Secured Credit Card

Check out the Wells Fargo Business Secured Credit Card. It allows cardholders to get a credit limit of $500 – $25,000. The amount available is the same as the amount of money you supply to secure the line.

Your purchase APR rate can be as low as a variable 13.15%. The annual fee is $25. The more cards you have, the more expensive your annual fee is going to be.

This card lets business owners with bad personal credit to acquire a card to make purchases and set up business credit.

But the card will only report to the personal credit agencies if you default or are overdue on payments.

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

Which Credit Cards Will Help Build Business Credit Suite

Check out how our reliable process will help your business get the best business credit cards.

Which Credit Cards Will Help Build Business Credit: Excellent Business Credit Cards for Fair Credit

For Fair Credit, we like the Capital One Spark Classic for Business. It has no annual fee. There are cash-back rewards. You will need to have a credit score of 690 or higher.

NOTE: the standard APR is 23.99% variable APR.

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

Which Credit Cards Will Help Build Business Credit: Awesome Company Credit Cards with 0% APR

For a 0% APR time period, we really like the Ink Business Cash ℠ Credit Card. You pay no annual cost. It’s got an interest-free period. It has versatile cash-back rewards.

There are spending limits for employees. You will need to have a credit score of 690 or higher.

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

Blue Business Plus from American Express

For an introductory 0% APR time period, we also like the Blue Business ℠ Plus Credit Card from American Express. It has an introductory 0% APR for 15 Months. You can earn double points on regular business expenses up to a yearly cap.

The regular APR is 12.24% – 20.24%. So this is variable.

Get it here: https://creditcard.americanexpress.com/blue/

Which Credit Cards Will Help Build Business Credit: Spectacular Low APR/Balance Transfers Business Credit Cards

For Low APR/Balance Transfers Business Credit Cards, we like the U.S. Bank Business Edge Platinum. You start with twelve months of 0% APR financing on new purchases and balance transfers. But there is a 3% balance transfer cost.

Thereafter, the purchase APR is a variable 10.49% – 18.49%. But this is dependent on creditworthiness. Yet there is no yearly fee. This card is just available to those with great or outstanding credit. But there is no rewards program for purchases.

Get it here: https://www.usbankedge.com/credit/business-edge-platinum.do

Blue Business Plus from American Express

Also, have a look at the Blue Business Plus Credit Card from American Express. It has a 15-month initial 0% APR offer. And there is no yearly fee.

Right now companies can get double points on the initial $50,000 in purchases each year.

Get it here: https://creditcard.americanexpress.com/blue/

Which Credit Cards Will Help Build Business Credit: Cards for Luxurious Travel Points

 

For Travel Points, we like the Gold Delta SkyMiles Business Credit Card from American Express. Get 30,000 bonus miles after you make $1,000 in purchases on your new card within your very first three months. Terms and limitations apply.

In addition earn a $50 statement credit after you make a Delta purchase with your card in your first three months. Earn two miles per dollar spent on purchases made straight with Delta. Earn one mile per qualified dollar spent on purchases.

Get it here: https://www.americanexpress.com/us/small-business/credit-cards/gold-delta-skymiles/44279

Business Platinum from American Express

Check out the Business Platinum Card from American Express. Travel benefits including access to these airport lounge networks:

  • Priority Pass Select
  • Delta SkyClubs
  • American Express Centurion Lounges

You also get Gold Status when you register for the Starwood Preferred Guest program. There is also a $200 yearly air travel fee credit.

TSA Details

There is a $100 credit towards the Global Entry application fee, including access to TSA PreCheck program. You get one point for every dollar spent on most purchases. Also, you get 1.5 times the points on charges of $5,000 or more on qualified purchases.

But this is up to one million more points per year. Also get five points per dollar spent buying flights and prepaid hotels from the American Express Travel site.

Get it here: https://www.americanexpress.com/us/small-business/credit-cards/business-platinum/44279

Which Credit Cards Will Help Build Business Credit Suite

Check out how our reliable process will help your business get the best business credit cards.

Ink Business Preferred from Chase

Also, be sure to check out the Ink Business Preferred Card from Chase. Get 80,000 bonus points once you spend $5,000 on purchases in your first three months from account opening.

Get three points for each dollar on the first $150,000 spent in combined purchases on travel, shipping purchases, internet, and cable and phone.

And this also applies to advertising purchases made with social media sites and search engines. But this is for each account anniversary year.

Also, get one point for each dollar on all of the other purchases. There is no limitation to the amount you can earn.

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

Which Credit Cards Will Help Build Business Credit: Terrific Cards for Cash Back

Consider the SimplyCash Plus Business Credit Card from American Express. You can earn up to $400 cash back. Earn a $200 statement credit after spending $5,000.

Also, get 5% cash back at US office supply stores and on wireless phone services purchased from US service providers. But this applies to the initial $50,000 of yearly spending.

You also get 3% cash back on the spending category of your choice. So this is from eight distinct categories. They include air travel, gas, advertising and computer purchases.

But it applies to the first $50,000 of annual spending.

And also you get 1% cash back on all other purchases.

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

Bank of America Business Advantage Cash Rewards MasterCard

Also, be sure to take a look at the Bank of America Business Advantage Cash Rewards MasterCard Credit Card. With this card, you can get a $200 statement credit.

So this is after $500 in purchases during 60 days of account opening.

You also get 3% cash back on purchases at gasoline stations and office supply stores. But this is up to $250,000 per year.

Also, you get 2% cash back on purchases at restaurants. And you also get 1% cash back on all purchases. There is no yearly fee. It is on offer to applicants with exceptional credit.

But your cash back can only be redeemed in $25 increments.

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

Spark Cash Select From Capital One

Additionally, consider the Spark Cash Select from Capital One. You get 1.5% cash back on all purchases, with no limitations.

New cardholders can also get a $200 cash bonus once they spend $3,000 on new purchases within three months of account opening. New customers also get initial APR of 0% on purchases for nine months. Also, there is no annual fee.

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

Which Credit Cards Will Help Build Business Credit Suite

Check out how our reliable process will help your business get the best business credit cards.

Which Credit Cards Will Help Build Business Credit: Foolproof Cards for Rewards

Consider the Business Gold Rewards Card from American Express OPEN. You can earn 50,000 Membership Rewards points after $5,000 in purchases on the card within first three months. Also, you get three points on your choice of five categories.

In addition, get two times the points on the remaining categories. Also, get one point per dollar on all other purchases. It has a $0 yearly fee for the first year.

But after that your annual fee increases to $175.

Get it here: https://www.americanexpress.com/us/small-business/credit-cards/business-gold-rewards

Business Platinum Card from American Express OPEN

Also, have a look at the Business Platinum ® Card from American Express OPEN. You can get up to 75,000 Membership Rewards points at the time of account opening.

Also earn 50,000 Membership Rewards points subsequent to spending $10,000. In addition, get 25,000 more points after spending an extra $10,000. So this is on all on qualifying purchases within the initial three months.

Plus you can get five times the Membership Rewards points on flights and pre-paid hotels on amextravel.com. But – yikes! – it has a $450 yearly fee.

Get it here: https://www.americanexpress.com/us/small-business/credit-cards/business-platinum/44279

Which Credit Cards Will Help Build Business Credit: The Best Business Credit Cards for You

Which credit cards will help build business credit? They will hinge on your credit history and scores. And they might just not turn out to be which credit cards will help build business credit.

Only you can choose which rewards you want and need, so be sure to do your homework.

And, as always, make certain to build credit in the recommended order for the max, fastest benefits. Share this and tell your friends what you think of which credit cards will help build business credit.

 

 

The post Which Credit Cards Will Help Build Business Credit? The Reliable Answer appeared first on Credit Suite.

How to Set Up a New Business in Iowa

Starting a Business in Iowa

A new business in Iowa is in your reach. Have you been wondering: exactly how do I start a business in Iowa? And more importantly, can I do so no matter what the economic conditions are? Can I start a new business in Iowa during a recession?

A New Business in Iowa: Pros and Cons

Business Insider puts Iowa in its middle ten states when it comes to starting a new business, according to a 2016 article. And this is for the entire nation. The state ties for the lowest rate of new entrepreneurs. There are very few startup firms per currently existing businesses. The cost of living in Iowa is somewhat low. Yet potential employees’ education levels rank in the top 10 among states.

Recent Upswing

In 2018, Fit Small Business named Iowa the seventh best state in which to start a business. Of course, keep in mind that Fit Small Business and Business Insider have differing methodologies.

Why the improvement? A high quality of life and the low costs of starting a business are mainly responsible. The labor market is good – and the cost of office space is the lowest in the nation!

A New Business in Iowa: State Initiatives

Initiatives that benefit an Iowa small business include no personal property tax. There is also no sales and use tax on machinery and equipment purchases. This state also offers a refundable credit for increasing research activities. It is up to 6.5% of qualifying expenditures. Furthermore, Iowa offers reduced or no corporate tax. Also, they have a 50% deductibility for federal taxes from Iowa corporate income. Iowa is one of only five states which offer this deductible.

The Iowa Partnership for Economic Progress (IPEP) works to improve every component of the state’s economic development portfolio. This includes business attraction, retention, innovation, and expansion. In order to help create new, high wage jobs for the people of Iowa, the state is targeting information technology, financial services, and renewable energy. They are also targeting advanced manufacturing, biosciences and food manufacturing as their desirable growth industries.

A New Business in Iowa: Opportunities

Smart business owners can take find new opportunities and advantage of the bigger industries in the area by offering goods or services such as information services. They could also offer computer programming and repair. Another option is trucking for any industry. More options are data work for financial services and the biosciences, among others.

Here is precisely how to start new business in Iowa.

Iowa New Business Secretary of State Requirements

Register a Business Name

Entrepreneurs who are looking to do business in Iowa can reserve their intended business name on the Iowa Secretary of State’s website.

For a corporation, a business owner must decide on a unique corporate name. The name that they choose must not be in use already by another corporation. Before they try to incorporate, they should conduct a thorough search of online records and other databases to see if the name they hope to use is available. A business owner can visit the official website of the Secretary of State to search a database of preexisting Iowa businesses.

If as business owner has decided on an available corporate name that they would like to use, they may want to reserve that name until the time that they are able to incorporate. Download the form to reserve a corporate name at Reserve an Iowa Corporation Name on the Iowa Secretary of State website. The fee is $10.00 to reserve a corporate name and then the name will be reserved for a period of 120 days.

Business Permits and Licenses

Check the Iowa Business License Information Center. It has a searchable database of licenses you may need.

Local Permits and Licenses

There is a list of city clerk websites available.

Start a New Business in Iowa – Business Registration

Registration forms are through the Iowa Secretary of State.

Tax Registration

The “Starting a Business” page on the Iowa Department of Revenue website is the place for information. The State of Iowa Business Tax online registration system can help you finish the job.

Virtual Offices

Alliance offers Iowa virtual business offices in Des Moines only.

For a Cedar Rapids virtual business address, go to Regus.

For other areas of the state, business owners might want to seek out local business owners. Or they might try computer user groups to try to find help in this area.

Other options may be the check with neighboring states when it comes to finding virtual business office space. These are Illinois, Kansas, Minnesota, Nebraska, Oklahoma, South Dakota, and Wisconsin.

Start a New Business in Iowa – Build Business Credit

Small business credit is credit in a company’s name. It doesn’t connect to an entrepreneur’s consumer credit, not even when the owner is a sole proprietor and the sole employee of the small business.

Accordingly, an entrepreneur’s business and individual credit scores can be very different.

The Advantages

Since company credit is distinct from consumer, it helps to secure a business owner’s personal assets, in the event of legal action or business insolvency.

Also, with two distinct credit scores, a business owner can get two separate cards from the same vendor. This effectively doubles buying power.

Another benefit is that even startup businesses can do this. Heading to a bank for a business loan can be a recipe for frustration. But building small business credit, when done right, is a plan for success.

Personal credit scores rely on payments but also additional factors like credit utilization percentages.

But for small business credit, the scores really just depend on whether a small business pays its invoices punctually.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

The Process

Growing business credit is a process, and it does not occur without effort. A business needs to proactively work to develop business credit.

That being said, it can be done easily and quickly, and it is much faster than building consumer credit scores.

Merchants are a big aspect of this process.

Performing the steps out of order will lead to repetitive denials. Nobody can start at the top with company credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Start a New Business in Iowa – Company Fundability

A company needs to be fundable to loan providers and vendors.

Hence, a small business will need a professional-looking web site and email address. And it needs to have website hosting from a supplier such as GoDaddy.

Additionally, company telephone and fax numbers should have a listing on 411.com.

At the same time, the company phone number should be toll-free (800 exchange or the equivalent).

A business will also need a bank account devoted strictly to it, and it has to have all of the licenses necessary for running.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

Start a New Business in Iowa – Dealing with the IRS

Visit the IRS web site and obtain an EIN for the small business. They’re totally free. Pick a business entity such as corporation, LLC, etc.

A business can begin as a sole proprietor. But they will probably want to switch to a form of corporation or an LLC.

This is in order to decrease risk. And it will make best use of tax benefits.

A business entity will matter when it involves tax obligations and liability in the event of a lawsuit. A sole proprietorship means the business owner is it when it comes to liability and tax obligations. No one else is responsible.

Sole Proprietors Take Note

If you run a company as a sole proprietor, then at the very least be sure to file for a DBA. This is ‘doing business as’ status.

If you do not, then your personal name is the same as the small business name. Consequently, you can find yourself being directly accountable for all small business financial obligations.

Also, per the IRS, using this structure there is a 1 in 7 probability of an IRS audit. There is a 1 in 50 chance for corporations! Steer clear of confusion and significantly decrease the odds of an Internal Revenue Service audit at the same time.

Starting Off the Business Credit Reporting Process

Begin at the D&B web site and obtain a cost-free D-U-N-S number. A D-U-N-S number is how D&B gets a business in their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s sites for the business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

By doing so, Experian and Equifax will have something to report on.

Vendor Credit Tier

First you should establish trade lines that report. This is also referred to as 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 obtain credit in the retail and cash credit tiers.

These types of accounts have the tendency to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first of all, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are in most cases Net 30, instead of revolving.

Therefore, if you get approval for $1,000 in vendor credit and use all of it, you must pay that money back in a set term, such as within 30 days on a Net 30 account.

Details

Net 30 accounts need to be paid in full within 30 days. 60 accounts have to be paid fully within 60 days. In contrast to with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you made use of.

To kick off your business credit profile the right way, you ought to get approval for vendor accounts that report to the business credit reporting agencies. When that’s done, you can then make use of the credit.

Then pay back what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Vendor Credit Tier – It Makes Sense

Not every vendor can help in the same way true starter credit can. These are merchants that will grant an approval with marginal effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

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. So, this is to demonstrate you are dependable and will pay promptly.

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then move onto the retail credit tier. These are businesses like Office Depot and Staples.

Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the company’s EIN on these credit applications. One example is Lowe’s. They report to D&B, Equifax and Business Experian. They want to see a D-U-N-S and a PAYDEX score of 78 or higher.

Fleet Credit Tier

Are there 8 to 10 accounts reporting? Then move to the fleet credit tier. These are businesses like BP and Conoco. Use this credit to purchase fuel, and to repair, and take care of vehicles. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the business’s EIN.

One such example is Shell. They report to D&B and Business Experian. They want to see a PAYDEX Score of 78 or better and a 411 business telephone listing.

Shell may say they want a specific amount of time in business or revenue. But if you already have adequate vendor accounts, that won’t be necessary. And you can still get an approval.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

Cash Credit Tier

Have you been responsibly handling the credit you’ve up to this point? Then move onto the cash credit tier. These are businesses like Visa and MasterCard. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

One such example is the Fuelman MasterCard. They report to D&B and Equifax Business. They want to see a PAYDEX Score of 78 or better. And they also want you to have 10 trade lines reporting on your D&B report.

Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting).

In addition, they want you to have an established small business.

These are service providers like Walmart and Dell, and also Home Depot, BP, and Racetrac. These are commonly MasterCard credit cards. If you have 14 trade accounts reporting, then these are in reach.

Start a New Business in Iowa –Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and address any errors ASAP. Get in the habit of taking a look at credit reports and digging into the particulars, and not just the scores.

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

Update Your Information

Update the details if there are mistakes or the details is incomplete.

Fix Your Business Credit

So, what’s all this monitoring for? It’s to dispute any mistakes in your records. Errors in your credit report(s) can be fixed. But the CRAs normally want you to dispute in a particular way.

Disputes

Disputing credit report errors usually means you send a paper letter with copies of any evidence of payment with it. These are documents like receipts and cancelled checks. Never mail the originals. Always send copies and retain the original copies.

Fixing credit report mistakes also means you specifically itemize any charges you dispute. Make your dispute letter as understandable as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you sent in your dispute.

Start a New Business in Iowa –A Word about Business Credit Building

Always use credit responsibly! Never borrow beyond what you can pay back. Monitor balances and deadlines for payments. Paying off on schedule and fully will do more to boost business credit scores than virtually anything else.

Establishing business credit pays. Great business credit scores help a business get loans. Your lending institution knows the business can pay its debts. They know the company is for real.

The small business’s EIN links to high scores and lending institutions won’t feel the need to require a personal guarantee.

Business credit is an asset which can help your small business for many years to come.

Learn more here and get started toward opening a new business in Iowa.

Want to start a new business someplace else in America? Then check out our handy guide to starting a business in any state in the country.

 

The post How to Set Up a New Business in Iowa appeared first on Credit Suite.

The post How to Set Up a New Business in Iowa appeared first on Buy It At A Bargain – Deals And Reviews.

How to Set Up a New Business in Rhode Island

Starting a Business in Rhode Island

A new business in Rhode Island is not out of reach. So have you been wondering: how do I start a business in Rhode Island? And more importantly, can I do so no matter what the economic conditions are? Can I start a new business in Rhode Island during a recession?

New Business in Rhode Island: Advantages and Disadvantages

Business Insider puts Rhode Island in its middle ten states for starting a new business, per a 2016 article. This is for the whole country. There are few startup companies in Rhode Island. But opportunity is high.

This small state is also close to Connecticut and Massachusetts. Therefore, it can easily draw highly educated employees from either neighboring state.

Rhode Island has a high ranking for key economic indicators like economic output per job, productivity growth, and high tech share of all businesses. The state also has an extremely educated and tech-savvy workforce.

Recent Declines

In 2018, Forbes names Rhode Island to its number 43 slot. Also in 2018, Fit Small Business says Rhode Island belongs in the number 40 spot. Of course keep in mind the three sites all have differing methodologies.

Forbes says Rhode Island has a better than average quality of life. But for all of the other metrics, it’s worse than the average.

Fit Small Business agrees that Rhode Island has a good quality of life. Access to capital is in the top ten for the nation. The labor market is better than average. Labor market is a measure of the desirability of an area and the number of people with bachelor’s degrees. But the costs of starting a business are worse than average. And Rhode Island stumbles in three other areas: taxes, cost of living, and startup activity.

In fact, for cost of living, Rhode Island doesn’t rank much better than neighbors Connecticut and Massachusetts, both of which rank far better according to Fit Small Business.

Only you can decide if it’s worth it to start a business in Rhode Island.

Start a New Business in Rhode Island – Top Industries in Rhode Island

While the high tech sector in Rhode Island is one of the state’s brighter spots, manufacturing is increasingly gaining strength there. This is as a result of the state’s commitment to supporting its continued development. Rhode Island also has taken solid steps to specifically help small businesses.

New Business in Rhode Island: Initiatives

These include launching an initiative to support job creation in the small business sector. It also includes putting strong support behind a program meant to increase credit accessibility for small startup businesses.

Rhode Island Business Ideas

Smart business owners can find new opportunities. Work with bigger industries in the state. Offer goods or services such as trucking for any industry and computer support.

Here is exactly how to start a new business in Rhode Island.

Rhode Island New Business Secretary of State Requirements

Register a Business Name

Check business name availability on the Rhode Island Secretary of State’s website.

Business Permits and Licenses

A list of professional licenses is on the State of Rhode Island webpage. A list is also on the Rhode Island Department of Business Regulation.

Corporations

Corporation names must be unique. Do an extensive search to find out a name is available.

Start by searching online records and other archives and catalogs such as the database of registered Rhode Island corporations. It is available at the official Rhode Island government website.

Corporate Name Reservations

If business owners want to reserve a corporate name, they will need to submit a name reservation application to the office of the Rhode Island Secretary of State.

Download this application form at Reserve a Rhode Island Corporate Name on the Rhode Island Secretary of State website. There is a fee of $50.00 to reserve a name and then the name remains reserved for 120 days.

Local Permits and Licenses

Check with your local municipality, city or county office or website. See if there may be any local licensing or permit requirements.

For example, in Providence, go to the Board of Licenses page on the city of Providence website.

Start a New Business in Rhode Island – Business Registration

Be sure to visit the Rhode Island Department of State online business portal. It will guide you through the steps and forms that you will need.

Tax Registration

So go to the Business Registration page of the Division of Taxation.

Start a New Business in Rhode Island – Virtual Offices

Alliance offers Rhode Island virtual business office space in Warwick only. However, the state is so small that Warwick should fit most if not all business owners’ purposes.

For other areas of the state, if a business owner absolutely cannot travel, they can try Regus. Note: virtually all of Rhode Island is within a one hour drive of every other part of Rhode Island.

Or ask local business owners. Also, try computer user groups for help in this area. More options may be virtual business office space in neighboring states. These are Connecticut and also Massachusetts.

Start a New Business in Rhode Island – Establish Business Credit

Small business credit is credit in a business’s name. It doesn’t link to an entrepreneur’s individual credit, not even if the owner is a sole proprietor and the sole employee of the small business.

As such, an entrepreneur’s business and consumer credit scores can be very different.

The Benefits

Because business credit is distinct from personal, it helps to secure a small business owner’s personal assets, in case of court action or business bankruptcy.

Also, with two distinct credit scores, a business owner can get two different cards from the same vendor. This effectively doubles buying power.

Another benefit is that even new ventures can do this. Visiting a bank for a business loan can be a recipe for frustration. But building company credit, when done properly, is a plan for success.

Individual credit scores depend upon payments but also additional considerations like credit use percentages.

But for company credit, the scores really only depend on whether a business pays its invoices timely.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

The Process

Growing business credit is a process, and it does not occur without effort. A small business needs to actively work to build business credit.

However, it can be done readily and quickly, and it is much more rapid than developing individual credit scores.

Vendors are a big aspect of this process.

Accomplishing the steps out of order will lead to repetitive denials. No one can start at the top with business credit. For instance, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Start a New Business in Rhode Island – Company Fundability

A small business must be fundable to credit issuers and merchants.

Hence, a small business will need a professional-looking website and e-mail address. And it needs to have website hosting from a company such as GoDaddy.

Additionally, company telephone and fax numbers must have a listing on 411.com.

Additionally, the business telephone number should be toll-free (800 exchange or the equivalent).

A company will also need a bank account dedicated solely to it, and it needs to have all of the licenses essential for operation.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

Working with the IRS

Visit the IRS web site and acquire an EIN for the company. They’re free of charge. Select a business entity such as corporation, LLC, etc.

A business can begin as a sole proprietor. But they will most likely want to switch to a form of corporation or an LLC.

This is in order to diminish risk. And it will make the most of tax benefits.

A business entity will matter when it involves tax obligations and liability in the event of a lawsuit. A sole proprietorship means the business owner is it when it comes to liability and tax obligations. Nobody else is responsible.

Sole Proprietors Take Note

If you run a small business as a sole proprietor, then at least be sure to file for a DBA. This is ‘doing business as’ status.

If you do not, then your personal name is the same as the business name. As a result, you can wind up being personally liable for all business financial obligations.

Also, according to the IRS, by having this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 chance for corporations! Prevent confusion and significantly decrease the chances of an Internal Revenue Service audit simultaneously.

Starting Off the Business Credit Reporting Process

Begin at the D&B website and obtain a cost-free D-U-N-S number. A D-U-N-S number is how D&B gets a small business in their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s websites for the small business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

By doing so, Experian and Equifax will have activity to report on.

Vendor Credit Tier

First you should build trade lines that report. This is also known as the vendor credit tier. Then you’ll have an established credit profile, and you’ll get a business credit score.

Start a New Business in Rhode Island Credit Suite

And with an established business credit profile and score you can start to acquire credit in the retail and cash credit tiers.

These varieties of accounts tend to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first off, what is trade credit? These trade lines are credit issuers who will give you preliminary credit when you have none now. Terms are generally Net 30, versus revolving.

Hence, if you get approval for $1,000 in vendor credit and use all of it, you will need to pay that money back in a set term, such as within 30 days on a Net 30 account.

Details

Net 30 accounts need to be paid in full within 30 days. 60 accounts have to be paid completely within 60 days. In comparison with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you used.

To launch your business credit profile the proper way, you ought to get approval for vendor accounts that report to the business credit reporting agencies. Once that’s done, you can then make use of the credit.

Then repay what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Vendor Credit Tier – It Makes Sense

Not every vendor can help like true starter credit can. These are vendors that will grant an approval with negligible effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

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. So, this is to demonstrate you are responsible and will pay on time.

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then move onto the retail credit tier. These are companies which include Office Depot and Staples.

Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the business’s EIN on these credit applications.

One example is Lowe’s. They report to D&B, Equifax and Business Experian. They need to see a D-U-N-S and a PAYDEX score of 78 or more.

Fleet Credit Tier

Are there 8 to 10 accounts reporting? Then move to the fleet credit tier. These are businesses such as BP and Conoco. Use this credit to buy fuel, and to repair, and maintain vehicles. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the business’s EIN.

One such example is Shell. They report to D&B and Business Experian. They need to see a PAYDEX Score of 78 or higher and a 411 business telephone listing.

Shell may claim they want a certain amount of time in business or profits. But if you already have sufficient vendor accounts, that won’t be necessary. And you can still get an approval.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

Cash Credit Tier

Have you been responsibly handling the credit you’ve up to this point? Then move onto the cash credit tier. These are companies such as Visa and MasterCard. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

One example is the Fuelman MasterCard. They report to D&B and Equifax Business. They need to see a PAYDEX Score of 78 or more. And they also want you to have 10 trade lines reporting on your D&B report.

Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting).

Plus, they want you to have an established business.

These are companies like Walmart and Dell, and also Home Depot, BP, and Racetrac. These are often MasterCard credit cards. If you have 14 trade accounts reporting, then these are doable.

Start a New Business in Rhode Island – Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and attend to any mistakes as soon as possible. Get in the practice of checking credit reports and digging into the details, and not just the scores.

We can help you monitor business credit at Experian and D&B for only $24/month. See: www.creditsuite.com/monitoring.

Update Your Information

Update the information if there are mistakes or the details is incomplete.

Fix Your Business Credit

So, what’s all this monitoring for? It’s to dispute any errors in your records. Errors in your credit report(s) can be taken care of. But the CRAs usually want you to dispute in a particular way.

Disputes

Disputing credit report mistakes usually means you send a paper letter with copies of any proof of payment with it. These are documents like receipts and cancelled checks. Never send the original copies. Always mail copies and keep the original copies.

Fixing credit report mistakes also means you specifically spell out any charges you challenge. Make your dispute letter as crystal clear as possible. Be specific about the issues with your report. Use certified mail so that you will have proof that you sent in your dispute.

Start a New Business in Rhode Island – A Word about Business Credit Building

Always use credit smartly! Never borrow beyond what you can pay back. Monitor balances and deadlines for repayments. Paying on time and completely will do more to boost business credit scores than almost anything else.

Building company credit pays off. Good business credit scores help a small business get loans. Your loan provider knows the small business can pay its financial obligations. They know the company is authentic.

The company’s EIN connects to high scores and loan providers won’t feel the need to ask for a personal guarantee.

Business credit is an asset which can help your small business for years to come.

Learn more here and get started toward opening a new business in Rhode Island.

Want to start a new business someplace else in America? Then check out our handy guide to starting a business in any state in the country.

 

The post How to Set Up a New Business in Rhode Island appeared first on Credit Suite.

How to Set Up a New Business in Iowa

Starting a Business in Iowa

A new business in Iowa is in your reach. Have you been wondering: exactly how do I start a business in Iowa? And more importantly, can I do so no matter what the economic conditions are? Can I start a new business in Iowa during a recession?

A New Business in Iowa: Pros and Cons

Business Insider puts Iowa in its middle ten states when it comes to starting a new business, according to a 2016 article. And this is for the entire nation. The state ties for the lowest rate of new entrepreneurs. There are very few startup firms per currently existing businesses. The cost of living in Iowa is somewhat low. Yet potential employees’ education levels rank in the top 10 among states.

Recent Upswing

In 2018, Fit Small Business named Iowa the seventh best state in which to start a business. Of course, keep in mind that Fit Small Business and Business Insider have differing methodologies.

Why the improvement? A high quality of life and the low costs of starting a business are mainly responsible. The labor market is good – and the cost of office space is the lowest in the nation!

A New Business in Iowa: State Initiatives

Initiatives that benefit an Iowa small business include no personal property tax. There is also no sales and use tax on machinery and equipment purchases. This state also offers a refundable credit for increasing research activities. It is up to 6.5% of qualifying expenditures. Furthermore, Iowa offers reduced or no corporate tax. Also, they have a 50% deductibility for federal taxes from Iowa corporate income. Iowa is one of only five states which offer this deductible.

The Iowa Partnership for Economic Progress (IPEP) works to improve every component of the state’s economic development portfolio. This includes business attraction, retention, innovation, and expansion. In order to help create new, high wage jobs for the people of Iowa, the state is targeting information technology, financial services, and renewable energy. They are also targeting advanced manufacturing, biosciences and food manufacturing as their desirable growth industries.

A New Business in Iowa: Opportunities

Smart business owners can take find new opportunities and advantage of the bigger industries in the area by offering goods or services such as information services. They could also offer computer programming and repair. Another option is trucking for any industry. More options are data work for financial services and the biosciences, among others.

Here is precisely how to start new business in Iowa.

Iowa New Business Secretary of State Requirements

Register a Business Name

Entrepreneurs who are looking to do business in Iowa can reserve their intended business name on the Iowa Secretary of State’s website.

For a corporation, a business owner must decide on a unique corporate name. The name that they choose must not be in use already by another corporation. Before they try to incorporate, they should conduct a thorough search of online records and other databases to see if the name they hope to use is available. A business owner can visit the official website of the Secretary of State to search a database of preexisting Iowa businesses.

If as business owner has decided on an available corporate name that they would like to use, they may want to reserve that name until the time that they are able to incorporate. Download the form to reserve a corporate name at Reserve an Iowa Corporation Name on the Iowa Secretary of State website. The fee is $10.00 to reserve a corporate name and then the name will be reserved for a period of 120 days.

Business Permits and Licenses

Check the Iowa Business License Information Center. It has a searchable database of licenses you may need.

Local Permits and Licenses

There is a list of city clerk websites available.

Start a New Business in Iowa – Business Registration

Registration forms are through the Iowa Secretary of State.

Tax Registration

The “Starting a Business” page on the Iowa Department of Revenue website is the place for information. The State of Iowa Business Tax online registration system can help you finish the job.

Virtual Offices

Alliance offers Iowa virtual business offices in Des Moines only.

For a Cedar Rapids virtual business address, go to Regus.

For other areas of the state, business owners might want to seek out local business owners. Or they might try computer user groups to try to find help in this area.

Other options may be the check with neighboring states when it comes to finding virtual business office space. These are Illinois, Kansas, Minnesota, Nebraska, Oklahoma, South Dakota, and Wisconsin.

Start a New Business in Iowa – Build Business Credit

Small business credit is credit in a company’s name. It doesn’t connect to an entrepreneur’s consumer credit, not even when the owner is a sole proprietor and the sole employee of the small business.

Accordingly, an entrepreneur’s business and individual credit scores can be very different.

The Advantages

Since company credit is distinct from consumer, it helps to secure a business owner’s personal assets, in the event of legal action or business insolvency.

Also, with two distinct credit scores, a business owner can get two separate cards from the same vendor. This effectively doubles buying power.

Another benefit is that even startup businesses can do this. Heading to a bank for a business loan can be a recipe for frustration. But building small business credit, when done right, is a plan for success.

Personal credit scores rely on payments but also additional factors like credit utilization percentages.

But for small business credit, the scores really just depend on whether a small business pays its invoices punctually.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

The Process

Growing business credit is a process, and it does not occur without effort. A business needs to proactively work to develop business credit.

That being said, it can be done easily and quickly, and it is much faster than building consumer credit scores.

Merchants are a big aspect of this process.

Performing the steps out of order will lead to repetitive denials. Nobody can start at the top with company credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Start a New Business in Iowa – Company Fundability

A company needs to be fundable to loan providers and vendors.

Hence, a small business will need a professional-looking web site and email address. And it needs to have website hosting from a supplier such as GoDaddy.

Additionally, company telephone and fax numbers should have a listing on 411.com.

At the same time, the company phone number should be toll-free (800 exchange or the equivalent).

A business will also need a bank account devoted strictly to it, and it has to have all of the licenses necessary for running.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

Start a New Business in Iowa – Dealing with the IRS

Visit the IRS web site and obtain an EIN for the small business. They’re totally free. Pick a business entity such as corporation, LLC, etc.

A business can begin as a sole proprietor. But they will probably want to switch to a form of corporation or an LLC.

This is in order to decrease risk. And it will make best use of tax benefits.

A business entity will matter when it involves tax obligations and liability in the event of a lawsuit. A sole proprietorship means the business owner is it when it comes to liability and tax obligations. No one else is responsible.

Sole Proprietors Take Note

If you run a company as a sole proprietor, then at the very least be sure to file for a DBA. This is ‘doing business as’ status.

If you do not, then your personal name is the same as the small business name. Consequently, you can find yourself being directly accountable for all small business financial obligations.

Also, per the IRS, using this structure there is a 1 in 7 probability of an IRS audit. There is a 1 in 50 chance for corporations! Steer clear of confusion and significantly decrease the odds of an Internal Revenue Service audit at the same time.

Starting Off the Business Credit Reporting Process

Begin at the D&B web site and obtain a cost-free D-U-N-S number. A D-U-N-S number is how D&B gets a business in their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s sites for the business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

By doing so, Experian and Equifax will have something to report on.

Vendor Credit Tier

First you should establish trade lines that report. This is also referred to as the vendor credit tier. Then you’ll have an established credit profile, and you’ll get a business credit score.

Start a New Business in Iowa Credit Suite

And with an established business credit profile and score you can start to obtain credit in the retail and cash credit tiers.

These types of accounts have the tendency to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first of all, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are in most cases Net 30, instead of revolving.

Therefore, if you get approval for $1,000 in vendor credit and use all of it, you must pay that money back in a set term, such as within 30 days on a Net 30 account.

Details

Net 30 accounts need to be paid in full within 30 days. 60 accounts have to be paid fully within 60 days. In contrast to with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you made use of.

To kick off your business credit profile the right way, you ought to get approval for vendor accounts that report to the business credit reporting agencies. When that’s done, you can then make use of the credit.

Then pay back what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Vendor Credit Tier – It Makes Sense

Not every vendor can help in the same way true starter credit can. These are merchants that will grant an approval with marginal effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

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. So, this is to demonstrate you are dependable and will pay promptly.

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then move onto the retail credit tier. These are businesses like Office Depot and Staples.

Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the company’s EIN on these credit applications. One example is Lowe’s. They report to D&B, Equifax and Business Experian. They want to see a D-U-N-S and a PAYDEX score of 78 or higher.

Fleet Credit Tier

Are there 8 to 10 accounts reporting? Then move to the fleet credit tier. These are businesses like BP and Conoco. Use this credit to purchase fuel, and to repair, and take care of vehicles. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the business’s EIN.

One such example is Shell. They report to D&B and Business Experian. They want to see a PAYDEX Score of 78 or better and a 411 business telephone listing.

Shell may say they want a specific amount of time in business or revenue. But if you already have adequate vendor accounts, that won’t be necessary. And you can still get an approval.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

Cash Credit Tier

Have you been responsibly handling the credit you’ve up to this point? Then move onto the cash credit tier. These are businesses like Visa and MasterCard. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

One such example is the Fuelman MasterCard. They report to D&B and Equifax Business. They want to see a PAYDEX Score of 78 or better. And they also want you to have 10 trade lines reporting on your D&B report.

Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting).

In addition, they want you to have an established small business.

These are service providers like Walmart and Dell, and also Home Depot, BP, and Racetrac. These are commonly MasterCard credit cards. If you have 14 trade accounts reporting, then these are in reach.

Start a New Business in Iowa –Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and address any errors ASAP. Get in the habit of taking a look at credit reports and digging into the particulars, and not just the scores.

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

Update Your Information

Update the details if there are mistakes or the details is incomplete.

Fix Your Business Credit

So, what’s all this monitoring for? It’s to dispute any mistakes in your records. Errors in your credit report(s) can be fixed. But the CRAs normally want you to dispute in a particular way.

Disputes

Disputing credit report errors usually means you send a paper letter with copies of any evidence of payment with it. These are documents like receipts and cancelled checks. Never mail the originals. Always send copies and retain the original copies.

Fixing credit report mistakes also means you specifically itemize any charges you dispute. Make your dispute letter as understandable as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you sent in your dispute.

Start a New Business in Iowa –A Word about Business Credit Building

Always use credit responsibly! Never borrow beyond what you can pay back. Monitor balances and deadlines for payments. Paying off on schedule and fully will do more to boost business credit scores than virtually anything else.

Establishing business credit pays. Great business credit scores help a business get loans. Your lending institution knows the business can pay its debts. They know the company is for real.

The small business’s EIN links to high scores and lending institutions won’t feel the need to require a personal guarantee.

Business credit is an asset which can help your small business for many years to come.

Learn more here and get started toward opening a new business in Iowa.

Want to start a new business someplace else in America? Then check out our handy guide to starting a business in any state in the country.

 

The post How to Set Up a New Business in Iowa appeared first on Credit Suite.

Recently Funded in Phoenix,AZ… $15,400.00 in Business Revenue Financing.

Our client was in need for equipment to help his company be outstanding in his field of business. All he had to do to proceed with financing was provide us with his last six months of bank statements and an application.  He is so pleased he didn’t have to miss an opportunity. Our client came to us with a need and we provided him a solution.

Congratulations to our client and thank you for allowing us to help be a part of your success!

Click Here to see how much funding you can get for your business.

The post Recently Funded in Phoenix,AZ… $15,400.00 in Business Revenue Financing. appeared first on ROI Credit Builders.

Make Meaningful Business Connections and More –10 Brilliant Business Tips of the Week

The Hottest and Most Brilliant Business Tips for YOU – Make the Most Meaningful Business Connections and More

Our research ninjas at Credit Suite smuggled out ten amazing business tips for you! Be fierce and score in business with the best tips around the web. You can use them today and see fast results. You can take that to the bank – these are foolproof! So let’s start making meaningful business connections!

Stop making stupid decisions and start powering up your business. Demolish your business nightmares and start celebrating as your business fulfills its promise.

And these brilliant business tips are all here for free! So settle in and scoop up these tantalizing goodies before your competition does!

#10. Let HR Lead the Way in Fulfilling Business Objectives

Our first jaw-dropping tip is all about hitting your business objectives with Human Resources.  Effortless HR says Human Resources is a great place to start when it comes to meeting certain business goals.

Our favorite tip was all about corporate culture. We particularly loved the idea of HR being a vehicle for anonymous surveys and other means of taking the temperature of the workforce.

Getting a handle on whether employees are happy is a laudable goal for any organization. By putting HR in charge of that, it removes the personal nature of such an inquiry from the equation. Rather than being pressured to say everything is awesome, employees can feel free to be honest in their assessments.

A corollary to this is working with HR to get a pipeline of employee suggestions set up. Because on the other side, HR can be the buffer between employees and management. A more frank discussion can happen if there is a referee. And HR, with its traditional tact-filled role, is perfect for the job.

#9. Stop Shrinking!

The next awesome tip is about effectively stopping shrinkage in your business. Business KnowHow lays it all out for us.

Er, what’s shrinkage? If you are a seller of goods rather than services, then you are all too familiar with it. It’s when the amount of stock you think you have on hand does not correspond to the amount of stock you actually do have on hand.

What Causes Shrinking?

The article lays out four reasons and three of them are criminal in nature. Those are shoplifting, employee theft, and return fraud. Return fraud comes in many forms, such as fake receipts or ‘returning’ goods which were shoplifted in the first place.

The only one of the four which is not criminal in nature is administrative errors. Even with computers and impeccably honest employees, someone just might enter a 9 when they meant to enter a 6.

Fix Your Incredibly Shrinking Problems

The solutions are likely the ones you would expect. Better store layouts with fewer blind spots can deter shoplifters. Improving employee hiring practices can cut down on employee theft. That is, if you ask for references, follow up on them! As for return fraud, better employee training can help, so your employees can spot this fraud and feel empowered enough to push for receipts and even identification. As for administrative errors, an improved point of sale system can help, as can better employee training.

We would also suggest doing inventories more often, so if there is a problem, it’s found before it snowballs into a disaster.

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Make meaningful business connections today.

#8. Bring it All Home

Our following life-changing tip concerns your inbound marketing strategy. G2 says it’s all about the specificity.

Inbound marketing is, essentially, the use of a website to attract prospects. By creating sharable, findable content, you bring people to your website (more about making your website awesome in tips #4 and #3). These often are ‘warm prospects’, i.e. people who are seriously considering plonking down some money on either what you sell or something awfully similar thereto.

Hence inbound marketing is an exceptionally important tool in your kit. But when you’re scattershot, your inbound marketing efforts are wasted. Or, at the very least, they involve a lot more effort than they should.

The part we really loved was the ‘blink test’. Which is: can you find the value on any given page in two seconds?

Yes, two seconds, less time than it takes for the fastest humans to run a 100 meter dash.

So the moral of the story is, get to the point. Yesterday.

#7. Defrost Your Emails

For our next sensational tip, we looked at cold email tips. Sales Hacker tells us there are some basic, almost universal components to a good cold email.

A cold email, of course, is a lot like a cold call.

But the first element is, unlike a 100% cold call, you introduce yourself and give a reason why you’re emailing. You make the contact a little less out of the blue this way.

Next up are the offer, and proof that it works. After all, why should your prospect download your e-book or schedule a demo or whatever if they have no idea what’s in it for them?

Last are the call to action and what to do next. “So hit reply and I’ll….”

That’s it? That’s it!

#6. Why Don’t You Write Me?

This tip is so cool, and it works! Foundr tells us all about how to make money with your email list.

We have written about email marketing before, but it bears repeating: it may not feel glamorous or cutting edge, but it sure does sell. And that’s kind of the whole point, now, isn’t it?

Segmentation, Measurement, Timing, and Calls to Action

Let’s say you own a residential real estate business. Don’t your childless clients have different needs from those who have kids? So why are you sending emails with information about school districts to people who aren’t parents and aren’t planning to change any time soon?

Measurement and metrics are, of course, some of our favorite things (we also kind of like raindrops on roses and whiskers on kittens, if you must ask). But measurement, ah measurement. It’s the surest way we know of to know if we’re succeeding. So bring on the yardsticks (and see tip #2)!

Timing matters because your customers and prospects might prefer weekend shopping, so an email on Monday is too late. Or they might want to take advantage of a sale – so they need some lead time.

As for calls to action, we sprinkle them throughout our blog posts and you have undoubtedly noticed them. These can be anything from ‘click her to buy’ to ‘call now for a free consultation’. Because your customers and prospects won’t know what you want from them unless you tell them.

Valuable Business Relationships Credit Suite#5. Make the Most Meaningful Business Connections

Grab this mind-blowing tip while it’s hot!

Meaningful business connections will help you sell – because it’s all about the business relationship these days. And customers don’t want a summer fling – they want a business relationship with some heft to it. Entrepreneur gives us the lowdown.

Go beyond networking and create meaningful business connections. But how?

Everyone Has Value

We had really hoped this would be 100% intuitive. You know, the kind of common sense which turns out to be utterly uncommon? Yeah, that stuff.

So the concept here is to be kind to everyone. As in the taxi driver, the receptionist, and the person who delivers your food. This should, when we get right down to it, be the kind of thing we all do instinctively. But unfortunately that is not always the case. So consider this a little refresher, okay?

And gather ‘round the electronic hearth because it’s time for a true story.

True Story

Nobody starts at the top, and your intrepid blog writer is no exception. Hence, way back (as in the Reagan Administration), I was a receptionist. It’s a fairly repetitive job. You answer calls, leave messages, and occasionally file or make copies. Keep in mind, this is way before the internet and a PC on every desk.

Of course job seekers would come in. They were always pretty obvious – nervous-looking people who seemed overly uncomfortable in their good clothes. They rarely accepted any offers of water or coffee.

So far, so good.

Most people are good and kind-hearted. We’ve all been in the same or a rather similar boat. Most people are polite and can sometimes be to a fault.

Then there’s the (thank goodness) minority.

Being barked at is no one’s idea of fun. It’s not even a cocker spaniel’s idea of fun.

Have you ever heard a story about a person who didn’t get a job because they were rude to the receptionist? That is a 100% true story. Yes, of course I told the powers that be if someone was rude. You better believe it.

Meaningful business connections start with being good to everyone, for you never know who can help you. Be a jerk or be successful. It’s your call.

Make Networking a Lifelong Habit

For a lot of people, networking can feel like a minuet of sorts. We trot it out only when we need work, and then it feels forced and weird.

But what if you did it every minute of every day? And what if you stopped calling it networking? What if, instead, you called it talking to people?

When networking and other attempts at forging meaningful business connections are only done when you want something, you’ll never get comfortable with the process. By the way, this also applies to your personal life. If you only talk to the gender of the person you desperately want to ask out when you want to ask someone out, then every single one of those conversations will be fraught with meaning. The stakes will be unbelievably high. The pressure will be enormous.

So cut yourself some slack and communicate more often with your fellow human beings. Yes, even if the pretty ones where you get all tongue-tied. This is the best way we know of to relieve that kind of social pressure.

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Make meaningful business connections today.

#4. Don’t Let Your Domain Name Crush Your BusinessValuable Business Relationships Credit Suite

Check out this spectacular tip, all about choosing the right domain name. Lead Pages tells us there are a lot of ways you can mess up your domain name. And some of them you might not even realize.

Scrap, Therapist, and More Unintentionally Funny and Cringeworthy Domain Name Words

Woe be unto Benjamin Dover, a scrap metal dealer with multiple hits and a therapy business on the side. And consider the problems William Todd Farmer (he’s a real person – just Google him) has when he just wants to use his initials.

So write out your proposed domain name. Then write it out again. And again. Get people you know and trust to give it a look-see. They might spot something you don’t.

And be prepared to change your idea of an ideal domain name.

So perhaps the best piece of advice is one we get from reading between the lines. And it is this. Until money changes hands and you actually own a coveted domain name, don’t get too attached to it, just in case you find out it’s a bad choice after all.

Top Level Domains

The article also repeated some information which we find to be exceptionally helpful. And that is, if you are buying .com, then you should buy .net, .us, etc. as well. Why? Because you don’t want someone to spoof your site, particularly when you are right in the middle of a social media crisis. And you also don’t want to have to buy those extra top level domains at an inflated price if you need them some time later.

So spend a few extra bucks at the start and cover these bases. You will be unbelievably glad you did.

#3. Build Your Business Empire Online

It’s not your imagination: this winning tip can help you create a business website – fast! Crowdspring lays it all out for us.

One of our imperatives when it comes to business credit building is to set up a professional business website. The first step is one we discussed in tip #4 – get a good domain name.

Logos, Design, and Coding

You may or may not be artistic, and you may or many not understand HTML or WordPress. But lots of other people do – and they are easy to hire.

Why do you want to hire a professional? Because otherwise you run the risk of getting a generic logo, a boring design, and out of the box, by-the-numbers coding. We highly recommend Upwork and Fiverr for these necessities. You can spend less and still get a great website.

#2. Bring on the Yardsticks!

Our second to last unbeatable tip can give you a new perspective on using Google Analytics. Main Street ROI tells us there are lots of great ways to use this amazing data. But they recommend five rather specific measurements.

Channels, Pages, and Products

Do you know where your visitors are coming from? Do you know if you’re getting more visitors from Facebook or LinkedIn or Twitter? And do you know if your widget page is doing better than your signup page?

Measuring People

What are the main characteristics of the people who visit their website? What makes them ditch their shopping carts? How old are they? Where are they? When do they visit your website?

Google Analytics makes all of this measuring possible. We loved this article, and we highly recommend reading it in its entirety.

#1. From Local to Online and Back Again

We saved the best for last. For our favorite remarkable tip, we focused on how a home services company can improve their online sales. Young Upstarts says a purely local business such a plumber can still get great sales from online visitors.

Our favorite tip was to provide more detailed information. As in, probably a lot more detail than you might expect.

For instance, let’s say you own a day spa. Do you offer manicures? And if you do, do you offer gel manicures, or nail art? You may think it’s overdoing it, but giving your prospects a better idea of what you can do for them will tell them whether it’s worthwhile to head on over to your shop.

And much like in tip #8, you’ll attract prospects who are searching for what you can provide. After all, they won’t know what that is, unless you tell them. So tell them!

So which one of our brilliant business tips was your favorite? And which one will you be implementing now?

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Make meaningful business connections today.

The post Make Meaningful Business Connections and More –10 Brilliant Business Tips of the Week appeared first on Credit Suite.