Tag: easy

Easy Business Credit – Use it 5 Ways

Easy Business Credit is Possible, Fast Business Credit is Not

Business credit is credit in the name of your business, not your own name. It is not connected to the business owner’s personal credit. Because of this, a business owner’s business and consumer credit scores can be very different.  There are many benefits to building business credit. Because business credit is distinct from the consumer, it helps to secure an entrepreneur’s personal assets in case of a lawsuit or business insolvency. It is easy to get business credit, but it is not fast.

Even start-ups can get easy business credit.  This is important, because visiting a bank for a business loan can be a formula for disappointment if personal credit isn’t top notch. By building small business credit, you can have a plan for success that does not involve your personal credit score or liability.

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

How to Get Easy Business Credit

As already stated, simple credit for a business doesn’t mean fast business credit.  It also doesn’t mean you sit back and build it on autopilot.  You cannot build business credit passively.  You have to work at it, intentionally.  Work doesn’t sound easy, I know, but the process really is uncomplicated.

The whole thing moves more quickly  if you start by setting up your business to build business credit from the beginning. However, even if your business is already operating,  you have to do that before you can start working on business credit.  It will just be a slower process.  Your business has to be established as an entity separate from yourself.

Establish Your Business as An Entity Separate from Yourself

This is the vital first step.  If you do not do this, then everything you do to build business credit will only affect your personal credit score.  You will still not have a separate business credit score. Here is how you start with easy business credit, and separate your business from yourself in the eyes of creditors and credit agencies.

Set Up Your Business for Building Credit

  • Your business has to have its own phone number and address that is separate from your personal phone number and address. The phone number should be from a toll-free exchange. Be sure to list your business name with its own contact information in all of the directories, including 411.
  • Formally incorporate your business with the IRS. You get to choose from a corporation, an S-corp, or an LLC.  The one you choose will depend on the amount of protection you want and how much you want to spend.
  • Get an EIN. This is an identifying number for your business that functions similarly to an SSN.   Get an EIN for free at gov.
  • You’ll need a D-U-N-S number to start building easy business credit. That’s another identifying number assigned by Dun & Bradstreet.  They do not open a business credit file unless you have this    As the largest and most commonly used business credit agency, you definitely need a file with them.
  • Open a business bank account. Use it for all business expenses.  You can pay yourself a salary out of it if you need to, but it has to be for business transactions only, and it must be opened in the name of the business using the business contact information.
  • Make certain your business has a professional website. It is best to hire or barter with a professional for this.  A poorly put together website can do a lot of damage, and having no website in this day and age is basically the same as not existing.
  • Get a dedicated email address for your business that has the same URL as your website. A free service such as Yahoo or Gmail will not work.

How Can You Get Easy Business Credit When You Have None?

It probably seems unrealistic that simple corporate credit is even a thing.  That’s because we all know that, with personal credit, it is hard to get credit without credit.  When you apply for credit, the creditors want to see a good credit score before they give it. Why is the process different for a business? Because there is a secret.  Lean in close so you can hear it.  The secret is the vendor credit tier.

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

You must start with trade vendors.  There is no other door to simple company credit.  You can’t start with retail credit cards or a business loan from your bank. If you do, you’ll get a rejection 100% of the time.

Vendor Credit Tier

Trade vendors are those vendors that offer tradelines and report payments to the business credit reporting agencies.  This is what we call the vendor credit tier. They will often offer net 30, 60, or 90 terms on invoices without a credit check. It is not revolving credit.

Therefore, 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.

Not every vendor can help like true starter starter vendors do. These are merchants that will grant an approval with very little effort. Also, you want them reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.  This is key, as if they are not reporting, the accounts are not helping you build.

You need 5 to 8 accounts reporting from this tier to move up to the next one, which is the retail credit tier.  It takes a little time to reach this step, as some vendors may require  a minimum amount of time in business or minimum annual revenue even if they do not require a credit check.

There are several such vendors out there, but as a general rule these are some of the easiest to get started with.

Uline Shipping Supplies

Uline Shipping Supplies offers shipping, packing, and industrial supplies,  and they report to D&B.

They require a D-U-N-S number, so be sure you have that handled before you apply. They will also ask to see 2 references and a bank reference. In addition, they may require you to order a few things and pay for them before approving net 30 terms.

fast corporate credit Credit Suite2

Quill

Quill works well for this purpose also. They sell office, packaging, and cleaning supplies, and they report to D&B and Experian.

Because Quill reports to two separate credit reporting bureaus, you get two credit experiences with them. Consequently, they should probably be your first stop so you can open a credit file with both Experian and Dun & Bradstreet from the beginning.

They will usually put you on a 90-day prepayment schedule, and if you order items each month for 3 months, they will go ahead and approve you for a Net 30 Account.

Grainger Industrial Supply

Grainger Industrial Supply is likewise a true starter vendor. They sell safety equipment, plumbing supplies, and more.  They also report to D&B. You will need a business license, EIN, and a D-U-N-S number before they will approve you.

For under a $1000 credit limit they will approve nearly any person with a business license.

Retail Credit Tier

Once there are eight or more vendor trade accounts reporting to at least one of the CRAs, you can apply for credit in the retail credit tier. These include retail stores such as Walmart, Amazon, and Office Depot.

Another example is Lowe’s. They report to D&B, Equifax and Business Experian. They want to see a PAYDEX score, the main score from Dun & Bradstreet, of 78 or higher.

Fleet Credit Tier

After eight or more accounts are reporting your payments from the retail credit tier, you can apply for cards in the fleet credit tier. These are companies like BP and Fuelman. Use this credit to buy fuel or to repair and maintain vehicles.

An example of a company in this tier is Shell, which reports to D&B and Business Experian. They need to see a PAYDEX Score of 78 or more, and they require a 411-directory business phone listing as well.

Shell might claim they want a certain amount of time in business or revenue. The truth is though, they will still approve you without meeting those requirements if you have enough vendor accounts reporting before you apply.

Cash Credit Tier

If you handle the credit you get in these tiers responsibly, then the cash credit tier will be your next stop. This includes cards from Visa and MasterCard that are not related to a specific retail store.  This is the top tier.  If you make it here and handle the credit you have in this tier responsibly, you will have a strong biz credit score that will help you run and grow your business.

When applying credit in any of these tiers, be sure to use your EIN and not your SSN.  Your SSN and birthdate should only be for identity verification purposes on these applications.

Easy Business Credit vs. Fast Business Credit

As you can see, the process of establishing and building business credit is not hard.  It is actually pretty simple if you follow the steps in order.  It’s a snowball effect that does not happen overnight though.  As you get approval for more accounts, more accounts are reporting, and you will be approved for even more accounts.  As positive payment history is recorded, your score will continue to build and grow stronger and stronger.

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

It is a process similar to building muscle.  It’s easy in that all you have to do is eat right and work out.  Results do not come quickly however.  It definitely takes time to build company credit just like it does to build muscle.  During the process, you also have to keep an eye on things, similar to stepping on the scale and measuring your waist.

Monitor Your Progress

You have to know what is happening with your credit. If you don’t, you will not really know how many accounts are being reported from each tier, and you will not know when the time is right to move on to the next tier.  You also need to make sure to correct any inaccuracies ASAP. This is more difficult with corporation credit than with personal however, as there is no free annual report available for your biz credit like there is  with your personal credit. Monitoring costs money.

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

At D&B you can monitor at: www.dandb.com/credit-builder. At Experian, you can monitor your account at: www.smartbusinessreports.com/Landing/1217/. And at Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business. Experian and Equifax cost about $19.99; D&B ranges from $49.99 to $99.99.

5 Ways You Can Use Business Credit to Improve Your Business

Once you have company credit, a world of opportunity is open to your business.  There is so much you can do that is not possible without it.  Here are 5 ways to use it to further the success of your business.

Take Advantage of Special Pricing

Often times you can find a great deal on goods and services if you purchase in bulk.  A diner may be able to get a 10% discount on certain high use spices, or a retailer may be able to get a great deal on certain inventory items by purchasing more than the standard amount.  The diner can save on expenses, and the retailer can cut the cost of goods sold.  Both situations have the potential to increase the bottom line, but there is usually a significant cash outlay involved.

Bridge a Seasonal Cash Gap

Do you run a seasonal business?  If you specialize in holiday items, toys, camping equipment, or any number of other things, your revenue may be higher during certain times of the year.  This can make for some pretty tight off-season budgeting issues.  Having strong business credit allows you to bridge those gaps with ease.

Earn Rewards

If you choose your cards carefully, you could make a substantial dent in expenses with credit card rewards.  The key is to find the rewards that best fit your needs.  If you earn cash back for certain expenditures or for spending at specific types of businesses, be sure those are things you spend on and places you spend at frequently enough to make a difference.  It doesn’t do you any good to earn cash back at restaurants if you prefer to eat at home.

Repair and Replace Equipment

If you have strong company credit, there will be no reason to stress or even have to go through a loan process each time you need to repair or replace equipment.  Need a new computer, printer, or industrial refrigerator.  Your corporate credit cards can handle that, and you can take care of the problem right then, without depleting cash on hand.

Small Expansion or Maintenance Projects

If you need to replace a window, upgrade your air conditioner, or  install new lighting, you can do so quickly and easily without the hassle of a new loan and without running your cash reserves too low.

Easy Business Credit Is Possible: Use it Wisely

Getting business credit isn’t hard, but there is a specific process that must be followed.  Trying to do things out of order will result in denials every time.  If you take the time and work the process however, you can have the company credit you need to handle whatever is thrown at you.

 

 

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Break in to the Credit Circle: 6 Easy Approval Business Trade Lines

Everything Starts with Something: Business Credit Starts with Business Trade Lines

Everything has to start somewhere, with something.  A flower starts with a seed.  A book starts with the first letter typed, a house begins with the first nail hammered, and a move begins with the director’s word.  When it comes to business credit, it all starts with business trade lines.

You have heard the adage you have to have money to make money.  You have probably heard you have to have credit to get credit.  While both of these are true to a point, seemingly catching us in a vicious circle, it isn’t entirely true with business credit.

A circle has no clear beginning.  Business credit however, does.  Just not very many people know about it, and it can be difficult to find. We know the secret though, and we are willing to share.

The Prep Work for Business Trade Lines

Of course, we all know that a lot of work goes in a house, a book, a garden, and a movie before that actual first nail, letter, seed, or director’s word.  This prep work lays as solid foundation for the final masterpiece.  There is a way to lay a solid foundation for business credit as well, before you even consider looking into business trade lines.

Research is how a book or movie starts, and any construction starts with clearing the area and dirt work.  A garden spot must be tilled and fertilized before seeds can be planted.  Something similar is necessary to establish and build business credit.  You have to build a solid foundation for that credit to sit on.  Now, that foundation is not necessarily your business.  Your business and your business credit will grow together.  You can start the prep work at the same time you are starting your business.

To be clear, if your business is already up and running you can still establish business credit.  The foundation can still be built.  In this way it is different than a building or a book.  However, as with any first steps, it is much easier to take them in the beginning.

How to Form the Foundation for Business Credit

Before you consider business trade lines, you need to consider how your business is set up.  For many new business owners, starting a business just kind of happens.  You have something you do that you love, and you decide its time to use it to make money.  You may find a location or start from your home.  Likely you simply mingle funds in your personal bank account.  You have a business name but the business address, email, and phone number are all the same as your personal contact information.  It is sort of a natural progression.

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

If you want to establish business credit, you have to be purposeful to set up your business separate from yourself.  This means doing a few things differently.

How to Establish Your Business as a Separate Entity

First, you have to incorporate.  Running as a DBA, sole proprietorship, or partnership really won’t cut it.  You can choose from running as a corporation, S-corp, or LLC based on your specific needs, but it needs to be one of these three. Each one comes associated with a different cost and varying levels of protection, but each will serve the purpose of separating your business from yourself.

Next, establish separate contact information for your business.  You need a business address, email, and phone number that is different from your personal address, email, and phone number.  The phone number should be from a toll-free exchange, and your email address should be associated with your professional website. Do not use a free service such as Gmail or Yahoo, and don’t ignore the professional website part.  These days, a poorly put together website can ruin a business.

Pick Your Numbers

After these first steps are complete you need to play the numbers game.  In order to establish business credit, your business has to have two numbers associated with it.  The first is an EIN.  This is an identifying number for a business, similar to a social security number.  You can get one for free on the IRS website.

The next is a DUNS number.  This is a number assigned by Dun & Bradstreet, the largest and most commonly used business credit reporting agency.  To have a business credit file with them, you must have a DUNS number.  You can apply for it for free on their website, but note that they will definitely try to sell you other services. Be strong.  The number is free and the other services are not necessary.

Separate the Finances to Get Business Trade Lines

Open a separate bank account for your business.  This is the account through which all business financial transactions should run.  If your business is already up and running, it may take you some time to get everything switched over, but it will be worth it.  Not only will is help separate your business from your personal credit, but it will also help tremendously when it is time to do your taxes.

Plant the Seed, Hammer the Nail: The Magic of Business Trade Lines

Okay, so these steps ensure that your business is on record as a business at all the right places.  As soon as something credit related is reporting, it will have a place to go.  How do you get something reported though?  You need accounts that will report your on-time payments.  Lenders will not even consider extending you credit however, if you don’t have a credit score, or if your credit score is bad.  How do you break into the circle?

You can find a tiny crack with business trade lines.  These are vendors that sell things you use in the everyday course of business, and they are vital to building business credit.  Here’s how it works.  They will extend net30 terms on invoices, without a credit check, and then report your invoice payments to the business credit reporting agencies.

For most of these vendors, you will have to make a few initial purchases before they will extent net30 terms.  Some want to see a minimum time in business or a certain revenue level as well.  We have compiled a list of six easy approval business trade lines to help you get started.

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

Newegg Business

If you need computers or other electronics, this is the place to start.  Newegg Business offers tons of electronic products, so there is something that pretty much any business can use.  To open an account with net30 terms, you’ll need a DUNS number and a bank reference.  Net30 accounts range from $500 to $1,000, and they report to Dun & Bradstreet.

Strategic Network Solutions

This company sells eBooks, software, and even office supplies.  You do have to register to see their products, but the process if fast and easy.  You will have to make a $60 or more initial purchase to be eligible for a net30 account of up to $2,000.  They report to Experian and Credit Safe.

Grainger Industrial Supply

Granger industrial supply sells industrial equipment for outdoors as well as standard tools, and more. To gain net 30 approval you will need a business license, a DUNS number, and bank reference.  Their net 30 accounts range from $500 to $1,000 and they report to Dun & Bradstreet.

Summa Office Supplies

Another office supply provider, you can order anything from paper to staples, pens to printer ink, and pretty much anything you can think of in between from Summa.  They require a $60 initial purchase, and will approve up to $2,000 on net 30 terms.  They report to Dun & Bradstreet.

Quill Office Supplies

Quill also sells standard office supplies.  You will need to make an initial purchase.  They’ll usually put you on a 90 day prepay scheduled, but after ordering for 3 months in a row, they’ll typically approve net 30 term.  They report to Dun & Bradstreet.

Uline

Uline sells a lot of things, but they specialize in packing and shipping equipment and janitorial supplies. You’ll need to place an initial order, and they do ask for a bank reference and two other references.  They report to Dun & Bradstreet, so you’ll of course need a DUNS number too.

If you open accounts and get net 30 approval with each of these, you could have between $5,000 and $10,000 in accounts reporting to the credit agencies pretty quickly.  Make your payment consistently, and that seed you planted with these easy approval business trade lines will sprout to the point you will be ready for the next step in building business credit before you know it.

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

What Comes After Business Trade Lines?

These business trade lines are all part of the vendor credit tier.  After you have a few of these accounts reporting, you can apply for accounts in the retail credit tier, then the fleet credit tier, then the cash credit tier.  Here’s what you need to know about each tier, and what happens when you get to the top.

The Retail Credit Tier

This would be relatable to the editing stage of writing a book or a movie, the weeding stage of planting a garden, or the sheetrock stage of building a house.  You’ve done the prework of research or preparing the ground, you have planted that first seed, banged out that first word, or hammered that first nail.  So now, it is time to move on.

In building business credit, after you have enough business trade lines reporting, this means moving on to the retail credit tier.  These are credit cards issued by specific retailers such as Amazon, Office Depot, and Best Buy.  Apply for these accounts, purchase things you need in the everyday course of running your business, and make your payments on-time.  Your business credit score will grow stronger by the day.

The Fleet Credit Tier

This is where you head into publication, start prescreens, water the garden daily, and start getting the inside of that house ready for move in with paint and appliances.  These cards are issued by fleet companies such as Shell and Fuelman.  They can be used to purchase gasoline or for automobile maintenance and repairs.  Once you have enough of these accounts reporting, it’s time for the last tier.

Business Trade Lines Credit Suite2

The Cash Credit Tier

The cash credit tier is the finished product.  Your book or movie is out there for the public to enjoy, your garden is ready for harvest, and you can sleep comfortably in that house each night.  The cash credit tier consists of the traditional Visa, Master, and American Express cards not associated with a specific store. Use this wisely, continue to make consistent, on-time payments, and your business credit will be rock solid.

Why Business Credit?

You may be asking yourself the question, why bother?  You may have personal credit that will allow you to get what you need to run your business without needing to work with business trade lines.   It can take time, and better prices may be available elsewhere.  What’s the point?  Why do you need business credit?

The fact is, its never a good idea to have your business transactions on your personal credit report.  There are a few reasons for this.  First, if your personal credit takes a hit, it can affect your ability to run your business.

Also, business credit cards based on personal credit often have a lower credit limit, and business transactions are often very large.  If you get close to your limit, your score will take a hit even if you make your payments like you should due to the high debt-to-credit ratio.

By having cards based on your business credit, you can get higher limits, and your personal credit will not be affected by business transactions.  This way, you do not have to worry about business transactions keeping you from applying for personal credit you may need to purchase a car or make home improvements.

Business Trade Lines are the Beginning of Great Business Credit

Regardless of your personal credit score, you really do have to work with business trade lines to start your business credit.  After you establish your business and prepare the way for your business transactions to be reported to your business credit profile, you will need accounts to report.  Most credit cards will not extend credit to a business with no credit, or bad credit.  Working with business trade lines that do not do a credit check is a way around that.  You can start building business credit in your business name without your personal credit score ever being involved.  So it’s a win/win for you and for your business.

 

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How to Build Backlinks for a New Website: 6 Easy Strategies to Get Started

How to Build Backlinks for a New Website: 6 Easy Strategies to Get Started

You’ve just launched a new website—maybe your very first. Where do you go to earn your first backlinks? Sure, creating quality content and stellar UX is a must, but you need to generate links if you want your new website to rank. The good news is that there are some easy and powerful link building strategies …

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