Establish and Maintain Rock-Solid Business Credit When You Have No Business Credit. Check Out 3 Well-Known Starter Vendors for Business Credit That Will Happily Extend Credit to New and Established Businesses

Building The Perfect Business Credit Portfolio with Starter Vendors for Business Credit

A perfect business credit portfolio means working with starter vendors for business credit. Starting with vendor credit accounts is a proven way to start building business credit. But we don’t include vendors just because they report to the business credit reporting agencies. We include them and we talk about them because they have quality products that you can use, and great customer service. They are not just a means to an end!

Vendor Credit Cards

Vendor credit cards will kick off business credit building for your business. First, add payment experiences from three vendors. Then they must report to business CRAs like Dun & Bradstreet. And then you can start qualifying for store credit, and fleet credit as well. Make sure business credit cards don’t report on your personal credit.

Every step and every credit provider works to help your business. The idea is to help you qualify for business credit cards that you will actually use. This isn’t building for the sake of building, and it isn’t just to increase a number. These credit providers are going to have what your business needs to succeed.

Business Credit with Starter Vendors for Business Credit

Keep in mind, business credit is independent of personal. Applying for it won’t harm your personal credit scores. Building this asset can only help your business. You can help your future business right now.

Business credit doesn’t just happen. You have to actively build it. It all starts with starter vendors. They will approve your business for credit with little fuss.

Use your credit. Pay on time, just like you should with personal credit. These vendors will report to the business credit reporting agencies. And you’ll build a good business credit score.

How to Build Business Credit

Having an EIN doesn’t mean you have established credit. If you go to a bank to try and get bank credit cards using your EIN with no credit established, you’ll get denials. That is unless you have good personal credit and use it to get approvals while supplying your personal guarantee. But it doesn’t have to be that way.

You can’t start with high limits. First you must build starter trade lines that report (vendor credit). Then you’ll have an established credit profile. Then you’ll get a business credit score. With an established business credit profile and score you can start getting high credit limits.

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

What is Starter Vendor Credit?

These trade lines are creditors who will give you initial credit when you have none now. These vendors typically offer terms such as Net 30, instead of revolving. So if you get approval for $1,000 in vendor credit and use it all, you must pay that money back in a set term. That is, within 30 days on a Net 30 account. But there are some revolving accounts which we still consider to be starter vendors.

You must pay net 30 accounts in full within 30 days. And you must pay net 60 accounts in full within 60 days. Unlike with revolving accounts, you have a set time when you must pay back what you borrowed or the credit you used.

Getting Started

To start your business credit profile the RIGHT way, get approval for vendor accounts that report to business CRAs. Once accomplished, you can then use the credit. Pay back what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Once reported, then you have trade lines, an established credit profile, and an established credit score. Using a newly established business credit profile and score, you can then get approval for more credit under your EIN. For vendor credit, you can leave your SSN off the application. Then the credit issuer then pulls your EIN credit, sees a solid profile and score. They can then approve you for more credit.

Building Business Credit – What You Really Need to Know

Not ALL retailers will approve you just because of your credit profile and score. Some sources can also have a time in business requirement. You may need to be in business 1-3 years to get credit not requiring a personal guarantee. Some sources might require you meet certain revenue requirements for as well. But many starter vendors will approve you without these requirements.

But Keep in Mind

You won’t get a Visa or a MasterCard (bank credit cards) right away. And you need to have credit to get more credit. You need to start building trade lines to get the big payoff. Getting initial credit is the hardest part. Over 97% of trade vendors who issue credit don’t report it to the business reporting agencies. So, you MUST find sources which actually report.

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

There are Benefits to Starter Vendors for Business Credit

Vendor credit is an important step in building business credit. Vendor credit is easier to get than retail or fleet credit. It can lead to more retail and fleet credit. Establishing credit will lead to lenders approving you. And best of all, this process is PROVEN to work! Just like for all credit, be responsible and pay on time.

More Benefits of Starter Vendors for Business Credit

You MUST have 3 or more vendor accounts reporting to move onto retail credit, and more are even better. It will take 30-90 days for those accounts to report. It’s 60 days on average. Do NOT apply for retail credit without having 3 or more accounts first.

Getting Starter Vendors for Business Credit to Pull Credit Under your EIN

There is no Social Security requirement for starter vendor credit. This is unlike bank loans and bank cards. So leave the field blank. Don’t fill in any other number, as that’s a violation of two Federal laws. A blank field will force them to pull your business credit under your EIN. Also, if there is a credit check, then it is perfectly permissible to provide the company’s EIN. You can use an EIN, rather than your Social Security Number and date of birth.

Using Business Credit

Check out FOUR of our favorite starter vendors for business credit:

Grainger
Uline
Marathon
Supply Works

Grainger Industrial Supply

They sell hardware, power tools, pumps and more. They also do fleet maintenance

Grainger will report to Dun and Bradstreet. If a business doesn’t have established credit, they will want to see more documents. These include accounts payable, income statement, balance sheets, etc. Terms are Net 30, Net 45, Net 60, or Net 90.

Qualifying for Grainger Industrial Supply

You need:

Entity in good standing with Secretary of State
EIN number with IRS
Business address (matching everywhere)
D-U-N-S number
Business License (if applicable)
Business Bank account
And your business must be registered to Secretary of State (SOS) for at least 60 days

Apply online or over the phone.

Uline

They sell shipping, packing and industrial supplies. They report to Dun & Bradstreet and Experian. You MUST create an account with Uline before starting to build business credit with them. Terms are Net 30.

Qualifying for Uline

You need:

Entity in good standing with Secretary of State
EIN number with IRS
Business address (matching everywhere)
D-U-N-S number
Business License (if applicable)
Business Bank account
And a business phone number listed in 411
You must have a D&B PAYDEX score of 80 or better

Application may get approval for net 30 at time of order. Upon final review, Credit Department may change to a few prepaid orders, before granting Net 30.

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

Marathon

Marathon Petroleum Company provides transportation fuels, asphalt, and specialty products throughout the United States. Their product line supports commercial, industrial, and retail operations. This card reports to Dun & Bradstreet and Experian. Before applying for more than one account with WEX Fleet cards, make sure to have enough time between applying. This is so they don’t red-flag your account for fraud.

Qualifying for Marathon

You need:

Entity in good standing with Secretary of State
EIN number with IRS
Business address- matching everywhere.
D-U-N-S number
Business license (if applicable)
And a business bank account
Business phone number listed on 411

Your SSN is necessary for informational purposes. If concerned they will pull your personal credit talk to their credit department before applying. You can give a $500 deposit instead of using a personal guarantee, if in business less than a year. Apply online or over the phone. Terms are Net 15.

Supply Works

Supply Works is a part of Home Depot. They offer integrated facility maintenance supplies. But they will not accept virtual addresses. They will report to Experian. Terms are Net 30. Apply online or over the phone.

Qualifying for Supply Works

You need:

Entity in good standing with Secretary of State
EIN number with IRS
Business address (matching everywhere)
D-U-N-S number
Business License (if applicable)
Business Bank account
Trade/Bank references
There is no minimal time in business requirement

Extra BONUS Vendor: Wex Fleet

They report to Experian and D&B. They offer universal fleet cards, heavy truck cards, and universally accepted business fleet cards. Their cards have features supporting a small business. This includes a rewards program. Before applying for more than one account with WEX Fleet cards, make sure to have enough time between applying. This is so they don’t red flag your account for fraud.

If you don’t get an approval on the basis of business credit history, or been in business 1 year, then a $500 deposit is necessary or a Personal Guarantee. You can apply online or over the phone. Terms are Net 15 (Wex Fleet Card), Net 22, or revolving (Wex FlexCard).

Qualifying for Wex Fleet

You need:

Entity in good standing with Secretary of State
EIN number with IRS
Business address (matching everywhere)
D-U-N-S number
Business License (if applicable)
Business Bank account
And a Business Phone Number Listed in 411

Starter Vendors for Business Credit: Takeaways

Starter vendors are a PROVEN way to get the business credit ball rolling. They will approve you with minimal fuss. Certain requirements repeat. These include needing to have EIN and D-U-N-S numbers. And having proper licensing (if your industry requires that). Hence getting those details squared away is a smart step to take first. Want more help with building business credit? Ask us how we can help you – including our access to literally HUNDREDS of vendors. Let’s take the next steps together

The post Establish and Maintain Rock-Solid Business Credit When You Have No Business Credit. Check Out 3 Well-Known Starter Vendors for Business Credit That Will Happily Extend Credit to New and Established Businesses appeared first on Credit Suite.

How Hard is it to Establish Business Credit in a Recession?

Do you know? How hard is it to Establish Business Credit in a Recession?

It’s a brilliant question. How hard is it to establish business credit in a recession? Is business credit building impossible? Or is it just some nightmare? And what happens in an economic downturn?

I assure you it is not only possible, it is downright sure-fire. And business credit is all but recession-proof!

Business credit is credit in a business’s name. It doesn’t link to an owner’s personal credit, not even if the owner is a sole proprietor and the solitary employee of the corporation. Because of this, an entrepreneur’s business and consumer credit scores can be very different.

The Advantages

Because business credit is distinct from individual, it helps to safeguard a business owner’s personal assets, in the event of court action or business insolvency. Also, with two separate credit scores, an entrepreneur can get two separate cards from the same merchant.

This effectively doubles buying power.

Another benefit is that even startups can do this. Visiting a bank for a business loan can be a formula for frustration. But building small business credit, when done right, is a plan for success.

Individual credit scores are dependent on payments but also additional considerations like credit usage percentages. But for small business credit, the scores actually merely depend on whether a corporation pays its invoices timely.

How Hard is it to Establish Business Credit in a Recession: The Process

Establishing business credit is a process, and it does not occur automatically. A corporation will need to proactively work to build business credit. Nonetheless, it can be done readily and quickly, and it is much swifter than developing individual credit scores.

Merchants are a big component of this process.

Doing the steps out of sequence will cause repetitive rejections. No one can start at the top with company credit. For instance, you can’t start with store or cash credit from your bank. If you do you’ll get a rejection 100% of the time.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How Hard is it to Establish Business Credit in a Recession: Company Fundability

A business has to be authentic to lenders and vendors. As a result, a company will need a professional-looking website and email address, with website hosting from a company like GoDaddy. Additionally business phone and fax numbers need to have a listing on ListYourself.net.

At the same time the company telephone number should be toll-free (800 exchange or the like).

A company will also need a bank account dedicated strictly to it, and it must have every one of the licenses essential for running. These licenses all must be in the accurate, accurate name of the company, with the same business address and phone numbers.

Keep in mind that this means not just state licenses, but potentially also city licenses.

How Hard is it to Establish Business Credit in a Recession: Dealing with the Internal Revenue Service

Visit the IRS web site and obtain an EIN for the small business. They’re free of charge. Select a business entity like corporation, LLC, etc.

A small business can start off as a sole proprietor. But will most likely wish to switch to a form of corporation or partnership to decrease risk and maximize tax benefits.

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

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

If you do not, then your personal name is the same as the small business name. Therefore, you can find yourself being directly responsible for all company debts.

And also, per the IRS, with this structure there is a 1 in 7 probability of an IRS audit. There is a 1 in 50 chance for corporations! Prevent confusion and drastically lower the odds of an Internal Revenue Service audit as well.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How Hard is it to Establish Business Credit in a Recession: Starting off the Business Credit Reporting Process

Begin at the D&B website and obtain a cost-free DUNS number. A DUNS number is how D&B gets a corporation into their system, to produce a PAYDEX score. If there is no DUNS number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s websites for the company. You can do this at https://www.creditsuite.com/reports/. If there is a record with them, check it for accuracy and completeness.

If there are no records with them, go to the next step in the process. By doing this, Experian and Equifax will have something to report on.

Trade Lines

First you must build trade lines that report. This is also known as vendor accounts. 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 obtaining revolving store and cash credit.

These kinds of accounts have the tendency to be for the things bought all the time, like 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 initial credit when you have none now. Terms are oftentimes Net 30, instead of 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, like within 30 days on a Net 30 account.

Details

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

To begin your business credit profile the right way, you should get approval for vendor accounts that report to the business credit reporting agencies. As soon as 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.

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

And Continue…

So get 3 of these to move onto the next step, which is revolving store credit.

1. Uline Shipping Supplies

Uline Shipping Supplies is a true starter vendor. Find them online at https://www.uline.com/. They offer shipping, packing, and industrial supplies, and they report to D&B and Experian.

You need to have a DUNS number. They will ask for 2 references and a bank reference. The initial few orders may need to be paid in advance to initially get approval for Net 30 terms. Also, you may need to buy some things you do not need.

2. Crown Office Supplies

Crown Office Supplies is another true starter vendor. Find them online at https://crownofficesupplies.com.

They sell a variety of office supplies and take helping clients seriously. They say, “just starting your business, or maybe have an existing business, but you have a question regarding office supplies… we are here to help!” And they report to Dun and Bradstreet, Experian, and Equifax.

There is a $99.00 yearly fee, though they do report that fee to the business credit reporting agencies. For other purchases to report, the purchase must be at least $30.00. Terms are Net 30.

3. Grainger Industrial Supply

Grainger Industrial Supply is also a true starter vendor. Find them online at https://www.grainger.com/. They sell safety equipment, plumbing supplies, and more, and they report to D&B. You will need a business license, EIN, and a DUNS number.

For less than $1000 credit limit they will approve virtually anybody with a business license.

Accounts That Don’t Report

Non-Reporting Trade Accounts can also be helpful. While you do want trade accounts to report to at the very least one of the CRAs, a trade account which does not report can yet be of some worth. You can always ask non-reporting accounts for trade references.

Also credit accounts of any sort will help you to better even out business expenditures, consequently making financial planning simpler. These are companies like PayPal Credit, T-Mobile, and Best Buy.

Revolving Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs move to revolving store credit.

Use the corporation’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. These are companies like BP and Conoco. Use this credit to buy, repair, and take care of vehicles. Make certain to apply using the business’s EIN.

Cash Credit

Have you been sensibly managing the credit you’ve gotten up to this point? Then move onto more universal cash credit. These are service providers such as Visa and MasterCard. Keep your SSN off these applications; use your EIN instead.

These are typically MasterCard credit cards. If you have more trade accounts reporting, then these are doable.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How Hard is it to Establish Business Credit in a Recession: Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and fix any inaccuracies ASAP. Get in the practice of checking credit reports. Dig into the specifics, not just the scores.

We can help you monitor business credit at Experian and D&B for $90 less. Update the relevant information if there are errors or the details is incomplete.

Disputing Mistakes

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

Disputing credit report inaccuracies 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 mail the originals. Always send copies and retain the originals.

Disputing credit report inaccuracies also means you specifically detail any charges you challenge. Make your dispute letter as clear as possible. Be specific about the issues with your report. Use certified mail so that you will have proof that you mailed in your dispute.

How Hard is it to Establish Business Credit in a Recession: A Word about Business Credit Building

So always use credit sensibly! Don’t borrow beyond what you can pay off. Monitor balances and deadlines for payments. Paying on time and fully will do more to boost business credit scores than virtually anything else.

Establishing corporate credit pays. Good business credit scores help a company get loans. Your credit issuer knows the corporation can pay its financial obligations.

They know the corporation is authentic. And the business’s EIN connects to high scores, and credit issuers won’t feel the need to require a personal guarantee.

How Hard is it to Establish Business Credit in a Recession: Takeaway

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

Obtaining merchant accounts for business credit means that you are on your way to getting good business credit.

These three should conveniently get you going. How hard is it to establish business credit in a recession? Pretty easy! So go out there and clobber it! Learn more here and get started toward establishing business credit.

The post How Hard is it to Establish Business Credit in a Recession? appeared first on Credit Suite.

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How to Establish Business Credit for the First Time in a Recession

As the novel coronavirus changes our economy, you may be wondering if you even can establish business credit for the first time in a recession. You most certainly can! And here’s how.

Establish Business Credit for the First Time in a Recession

Establishing small business credit means that your company gets opportunities you never knew you would. You can get all-new equipment, bid on realty, and cover the company payroll, even when times are a bit lean. This is specifically helpful in seasonal companies, where you can go for calendar months with solely hardly any sales. It’s time to establish business credit for the first time in a recession.

Yes, this can even happen during a bleak economy.

Given this, you should really work on developing your company credit. Improve and maintain your scores and you will have these chances. Do not, and either you do not get these chances, or they will set you back you a lot more. And no company owner wants that. You ought to recognize what affects your company credit before you can make it better.

Establish Business Credit for the First Time in a Recession: Business Credit Building

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

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

The Benefits

Considering that business credit is independent from personal, it helps to secure a business owner’s personal assets, in the event of litigation or business insolvency.

Also, with two distinct credit scores, an entrepreneur can get two separate cards from the same merchant. This effectively doubles buying power.

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

Consumer credit scores depend on payments but also additional components like credit usage percentages.

But for business credit, the scores truly just hinge on whether a company pays its bills on a timely basis.

Establish Business Credit for the First Time in a Recession: The Process

Building small business credit is a process, and it does not happen automatically. A company has to actively work to develop business credit.

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

Vendors are a big component of this process.

Performing the steps out of order will lead to repetitive rejections. 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.

Establish Business Credit for the First Time in a Recession: Company Fundability

A company must be fundable to lending institutions and merchants.

For this reason, a company will need a professional-looking web site and email address. And it needs to have website hosting bought from a company such as GoDaddy.

Plus, business telephone and fax numbers ought to have a listing on ListYourself.com.

In addition, the company telephone number should be toll-free (800 exchange or the equivalent).

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

Licenses

These licenses all must be in the accurate, correct name of the small business. And they must have the same small business address and phone numbers.

So bear in mind, that this means not just state licenses, but potentially also city licenses.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Establish Business Credit for the First Time in a Recession: Dealing with the Internal Revenue Service

Visit the IRS website and get an EIN for the business. They’re free of charge. Pick a business entity such as corporation, LLC, etc.

A company can begin as a sole proprietor. But they will more than likely want to switch to a variety of corporation or an LLC.

This is in order to lessen risk. And it will take full advantage of tax benefits.

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

Sole Proprietors Take Note

If you operate a 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 company name. Therefore, you can find yourself being directly responsible for all company financial obligations.

Also, according to the Internal Revenue Service, using this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 probability for corporations! Steer clear of confusion and drastically lower the odds of an Internal Revenue Service audit simultaneously.

But don’t look at a DBA filing as being anything beyond a steppingstone to incorporating.

Establish Business Credit for the First Time in a Recession: Kicking Off the Business Credit Reporting Process

Start at the D&B website and obtain a free D-U-N-S number. A D-U-N-S number is how D&B gets a company 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 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.

In this way, Experian and Equifax will have activity to report on.

Vendor Credit

First you need to build trade lines that report. This is also called vendor credit. 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 get retail and cash credit.

These kinds of accounts often 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 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 usually Net 30, instead of revolving.

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

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Details

Net 30 accounts must be paid in full within 30 days. 60 accounts must be paid completely 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 launch your business credit profile properly, you ought to get approval for vendor accounts that report to the business credit reporting agencies. As soon as 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 – It Makes Sense

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

You want 3 of these to move onto the next step, which is retail credit.

Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, then move to store credit. These are service providers such as Office Depot and Staples.

Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use the business’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then move onto fleet credit. These are service providers such as BP and Conoco. Use this credit to buy fuel, and to fix and maintain vehicles. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the small business’s EIN.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Cash Credit

Have you been responsibly handling the credit you’ve up to this point? Then move to more universal cash credit. These are service providers such as Visa and MasterCard. Just use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

These are often MasterCard credit cards. If you have more trade accounts reporting, then these are in reach.

Establish Business Credit for the First Time in a Recession: Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and take care of any mistakes ASAP. Get in the habit of taking a look at credit reports. Dig into the details, not just the scores.

We can help you monitor business credit at Experian and D&B for a lot less.

Update Your Information

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

Establish Business Credit for the First Time in a Recession Fix Your Business Credit

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

Get your small business’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax business credit report at: www.equifax.com/business/credit-information.

Disputes

Disputing credit report inaccuracies typically 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 originals. Always send copies and keep the originals.

Fixing credit report inaccuracies also means you specifically detail any charges you challenge. 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 mailed in your dispute.

Establish Business Credit for the First Time in a Recession: A Word about Building Business Credit

Always use credit responsibly! Don’t borrow beyond what you can pay off. Track balances and deadlines for payments. Paying off promptly and completely will do more to increase business credit scores than just about anything else.

Establishing company credit pays off. Excellent business credit scores help a business get loans. Your loan provider knows the company can pay its debts. They understand the company is for real.

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

Establish Business Credit for the First Time in a Recession: Takeaway

Business credit is an asset which can help your business for years to come. It’s time to get started on how to establish business credit for the first time in a recession. Or at any other time! The COVID-19 situation will not last forever.

The post How to Establish Business Credit for the First Time in a Recession appeared first on Credit Suite.

How Hard is it to Establish Business Credit in a Recession?

Do you know? How hard is it to Establish Business Credit in a Recession?

I assure you it is not only possible, it is downright sure-fire. And business credit is all but recession-proof!

The Advantages

This effectively doubles buying power.

Another benefit is that even startups can do this. Visiting a bank for a business loan can be a formula for frustration. But building small business credit, when done right, is a plan for success.

How Hard is it to Establish Business Credit in a Recession: The Process

Merchants are a big component of this process.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How Hard is it to Establish Business Credit in a Recession: Company Fundability

At the same time the company telephone number should be toll-free (800 exchange or the like).

Keep in mind that this means not just state licenses, but potentially also city licenses.

How Hard is it to Establish Business Credit in a Recession: Dealing with the Internal Revenue Service

Visit the IRS web site and obtain an EIN for the small business. They’re free of charge. Select a business entity like corporation, LLC, etc.

A small business can start off as a sole proprietor. But will most likely wish to switch to a form of corporation or partnership to decrease risk and maximize tax benefits.

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

If you do not, then your personal name is the same as the small business name. Therefore, you can find yourself being directly responsible for all company debts.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How Hard is it to Establish Business Credit in a Recession: Starting off the Business Credit Reporting Process

If there are no records with them, go to the next step in the process. By doing this, Experian and Equifax will have something to report on.

Trade Lines

First you must build trade lines that report. This is also known as vendor accounts. 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 obtaining revolving store and cash credit.

These kinds of accounts have the tendency to be for the things bought all the time, like 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 initial credit when you have none now. Terms are oftentimes Net 30, instead of 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, like within 30 days on a Net 30 account.

Details

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

And Continue…

So get 3 of these to move onto the next step, which is revolving store credit.

1. Uline Shipping Supplies

Uline Shipping Supplies is a true starter vendor. Find them online at https://www.uline.com/. They offer shipping, packing, and industrial supplies, and they report to D&B and Experian.

2. Crown Office Supplies

Crown Office Supplies is another true starter vendor. Find them online at https://crownofficesupplies.com.

There is a $99.00 yearly fee, though they do report that fee to the business credit reporting agencies. For other purchases to report, the purchase must be at least $30.00. Terms are Net 30.

3. Grainger Industrial Supply

For less than $1000 credit limit they will approve virtually anybody with a business license.

Accounts That Don’t Report

Revolving Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs move to revolving store credit.

Use the corporation’s EIN on these credit applications.

Fleet Credit

Cash Credit

These are typically MasterCard credit cards. If you have more trade accounts reporting, then these are doable.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How Hard is it to Establish Business Credit in a Recession: Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and fix any inaccuracies ASAP. Get in the practice of checking credit reports. Dig into the specifics, not just the scores.

We can help you monitor business credit at Experian and D&B for $90 less. Update the relevant information if there are errors or the details is incomplete.

Disputing Mistakes

How Hard is it to Establish Business Credit in a Recession: A Word about Business Credit Building

Establishing corporate credit pays. Good business credit scores help a company get loans. Your credit issuer knows the corporation can pay its financial obligations.

They know the corporation is authentic. And the business’s EIN connects to high scores, and credit issuers won’t feel the need to require a personal guarantee.

How Hard is it to Establish Business Credit in a Recession: Takeaway

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

Obtaining merchant accounts for business credit means that you are on your way to getting good business credit.

The post How Hard is it to Establish Business Credit in a Recession? appeared first on Credit Suite.

Survival of the Fittest: The Essential Guide to Establish Business Credit in a Recession

It may seem that trying to establish business credit in a recession is too little too late. It is definitely better to have strong business credit before a recession hits. However, if you are in the middle of hard economic times and trying to figure out how to survive and even thrive, all is not necessarily lost.

Also, business credit is a huge part of fundability. Strong fundability will benefit your business not only now, but long after the recession is over.

Establish Business Credit in a Recession: Survival Skills and Tips to Ensure You are Make it Off of Recession Island Alive

Becoming a business owner during a recession can feel much like being dropped into an episode of a survival reality show. Add in the COVID-19 pandemic and the illusion becomes even closer to reality. Everyone is struggling to hang on. The competition is fierce. You can only hope you will not be voted off. If you do not already have strong business credit in place, you may think the situation is hopeless. Yet, it is possible to establish business credit in a recession. It just may take a little more patience and creativity. Truly, nothing breeds creativity like hard times.

Whether you need it immediately or not, it is vitally important to have separate credit for your business. This is regardless of your current situation. The need is even more pressing during a recession.

The first step to establishing business credit in a recession is to set up your business as a separate entity from yourself. Even if you have stellar personal credit, you do not want it tied up with your business. The reverse is true as well.

If your personal credit goes south due to recession issues, you do not want your business to suffer. On the flip side, if your business struggles, you want your personal credit protected as much as possible.

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

Why Establish Business Credit in a Recession?

If you have found yourself on recession island without business credit, you may wonder how it could possibly help to establish it now. Here’s the thing. No business credit is the same as bad business credit. There is no time like the present. If you do it right, establishing and building business credit during a recession can only help you.

Business credit can help you access funding to get you through the hard times. If you need to cover a cash gap brought on by slow-paying customers, business credit can open up options for that. If you want to purchase inventory in bulk to take advantage of special pricing, business credit can help with that as well.

These are just two examples of how having strong business credit during a recession can help your business survive. It’s best to have a strong credit score in place before a recession hits. However, if you do not, you can establish business credit in a recession with these tips.

Separate from the Pack: Get Incorporated

While alliances are often formed on survival reality shows, the truth remains that you cannot trust anyone but yourself. This is especially true in the beginning. Your business needs to stand on its own.

The first step to separating your business from yourself and your personal credit is to incorporate. While easiest done on the front end when you first start your business, it is never too late.

You have a few options.

C Corp– This is the most definitive separation, but it is also the most complicated and expensive. Before choosing this option, be certain there are reasons other than establishing business credit that it needs to be done. If it isn’t necessary for some other reason, there are other, less complicated, and less costly options.
S Corp– This option basically offers the same separation as the C Corp, but taxes are paid at the personal level, rather than requiring the business to be taxed as well, resulting in double taxation. It is also cheaper than incorporating as a C Corp. If you aren’t required to file as a C corp, this is a good alternative.
LLC– forming a Limited Liability Corporation results in less liability, thus the name, and offers enough separation to serve the purpose of establishing business credit. If you are not required to be a C Corp or S Corp, this is the easiest and most cost-effective way to create the separation of business and personal credit needed.

Throw off Your Old Self: Get Rid of the SSN

Apply for an EIN and stop using your Social Security Number as the identifying number for your business. Your SSN is tied to you, personally. It is virtually guaranteed that anything connected to it credit-wise will end up on your personal credit reports.

In fact, if you follow the other steps for establishing business credit and skip this one, it could end up on both reports. You don’t want that.

The process for applying for an EIN is easy. The IRS has an online form. As soon as all the information is verified you receive your number. Typically, this happens almost immediately.

Separate but Equal: Do Not Mingle Personal and Business Finances

Do not buy into the falsehood that you can run your business expenses through the same bank account as your personal expenses. When you want to establish business credit in a recession or at any other time, your business needs its own account. Separate finances are vital to separate credit.

You have to separate expenses for tax purposes anyway. Having a separate business banking account will only make it easier.

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

Know Who You Report To: Get a Free DUNS Number

Dun and Bradstreet is the most widely used business credit reporting agency. They issue each business on file a 9-digit D-U-N-S number. The application is easy and free. Once you have that number, you will be even closer to establishing credit for your business separate from your own.

Be Easily Accessible: Set Up Separate Business Contact Information

Your business needs its own phone number. It should be an 800 number or from some other toll-free exchange. This way, when you apply for credit, you can enter contact information that is separate from your personal information. When information is reported to agencies, sometimes the phone number is an identifying factor. If you and your business share a number, that just decreases the level of separation.

The same is true for a separate business address, email address, and website. Your business address should not be the same as your home address. The business email address should contain the website URL. Do not use a free service such as Yahoo or Gmail.

Make sure your website is professionally presented and put together. A poorly put together website or broken links can do more damage than you may imagine.

Be sure you get your business phone number and address listed in the directories under the business name.

Form Preliminary Alliances: Start with the Vendor Credit

After you separate your business from yourself, it is time for the next step to establish business credit in a recession. Do business with starter vendors that will extend invoices with net30 terms. Then, when you pay, they will report the payment to the business credit reporting agencies. As a bonus, if you are finding yourself short on necessities due to the COVID-19 outbreak, these vendors may have what you need. Toilet paper, paper towels, and cleaning products are all available through some starter vendors.

Typically, these vendors issue net terms without regard to either your personal or business credit score. This makes them the perfect way to begin building your business credit score. While there are a lot of these types of vendors out there, some are better to start with than others.

You want to start with those that offer products you will use in the daily course of business. They also need to have minimal requirements for net30 terms. Though they do not check credit, some do have minimum time in business or annual revenue requirements. Others only require that you make a few initial purchases before they will extend net terms.

Three of the most common starter vendors that work great at the beginning of the process include:

Quill– offers office and cleaning supplies
Uline– sells packing supplies
Grainger– supplies for working outside including tools

Keep Building: Apply for Business Credit Cards

Continuing to build business credit is the next step after you establish business credit in a recession. Once you have your name, EIN, separate contact information, and 5 to 7 starter vendors reporting to the credit agencies, you can apply for credit from certain retailers. This step includes specific stores that issue credit to be used only in their stores or on their website.

Shoot for the highest limit, lowest interest, and most rewards options possible. Perks like cash back and travel points can pay off.

If you only qualify for a $200 limit and a higher-end interest rate, in the beginning, that is fine. You may not be able to get the best rate with a business that has a shorter credit history. This is especially true during a recession. However, if you pay consistently and on time, things should change quickly.

After you have several store accounts reporting, you can apply for fleet cards. These include cards from companies such as Shell and Fuelman that you can only use to pay for gasoline and automobile repairs.

Once you have several accounts reporting from all three of these types of cards, you can apply for credit that isn’t restricted by retailer or purchase type. These include well-known credit cards such as Visa and Mastercard that offer higher limits, lower rates, and better rewards.

Look for Friends in Unlikely Places: Open Talks with Your Utility Providers

Sometimes utility companies are willing to report payments to credit agencies. However, you almost always have to ask. The worst they can do is refuse. If they do, no harm no foul. If they agree, you will only establish your business credit faster.

Remember, if you are having trouble making utility payments right now due to reduced income related to coronavirus, you should probably wait to do this. Instead, talk to the utilities about what options they are offering in these circumstances. Some are not counting missed payments against customers for a couple of months. You have to discuss this with them however, do not assume anything.

Talk to them all, including telephone, electric, gas, and even internet. Before you do this, be certain that all of these utilities are in your company name under your separate business contact information.

Handle Your Business: Make Payments on Time

Of course, the most important part of establishing business credit is making on-time payments. If this doesn’t happen, then you will not like the credit you establish. It’s equally important whether you are trying to establish business credit in a recession or in a strong economic climate. Admittedly, it can be much harder during a recession, especially one induced by a global pandemic. Be sure you take advantage of all the resources available to help you stay current.

Planning is an important part of this. Do not overspend, and try not to use credit that you cannot pay back in a timely manner. It doesn’t have to be paid off all at once. You need to make payments to build credit, but be sure you can actually make the payments.

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

You Can Establish Business Credit in a Recession

If you follow these steps, it is possible to establish business credit in a recession. For new businesses, it can fall into place easily in the normal course of creating a business. If you have been around a while, it may require some backtracking. A recession may mean it takes longer, but it is more than doable if you follow the steps and trust the process.

The post Survival of the Fittest: The Essential Guide to Establish Business Credit in a Recession appeared first on Credit Suite.

Survival of the Fittest: The Essential Guide to Establish Business Credit in a Recession

Where to Establish Business Credit During a Recessionary Period

Learn Where to Establish Business Credit and Celebrate as Your Business Takes Off!

Do you know where to establish business credit during a recessionary period? When you are first beginning to establish company credit, your very first step should be vendor or trade credit. This is called starter vendor credit. It is an almost magical way to get started. We can show you how to build business credit step by step.

Where to Establish Business Credit During a Recessionary Period: It Starts with the Basics

No matter what, you want to enter into good credit practices. Hence this is everything from not borrowing too much, to paying your debts back promptly. And it also includes staying on good terms with your sources of credit. The absolute most vital thing you can possibly do, which will make the swiftest and greatest beneficial effect, is to pay off your invoices punctually or early. And develop a responsible and good payment record.

Are you asking, ‘do business credit cards build credit?’ They do! No doubt, this is the best way to build business credit. This even works during a recessionary period.

Where to Establish Business Credit During a Recessionary Period: Getting Started

You will have to launch a commercial credit profile and score with what are called starter vendors (also known as trade accounts or trade lines). Vendor credit merchants are ones who will give your small business initial credit. And they will do so even though your company has no credit, no score, or no trade lines.

Many of the more prominent and better known merchants will not extend to you initial starter credit. So do not even try starting a credit application with them.

Here are three vendor accounts which you can use to begin to develop your commercial credit. This is where to establish business credit. And bear in mind: if you are declined in the beginning, keep trying!

These are excellent vendors to build business credit!

Where to Establish Business Credit During a Recessionary Period: 1. Uline Shipping Supplies

Uline Shipping Supplies is a true starter vendor. You can find them online at www.uline.com.

This company offers for sale shipping, packing, and industrial supplies. These feature janitorial products and shipping boxes. And they also sell material handling products such as hand trucks and dollies. Most importantly, they report to Dun and Bradstreet.

This is the fastest way to build business credit. It’s a great way to get a build business credit card.

Where to Establish Business Credit During a Recessionary Period: 2. Quill

Quill is another true starter vendor. You can find them online at www.quill.com.

They market office, packaging, and cleaning products. Their product lines also feature toner, office furniture, and the like.

Quill reports to Dun and Bradstreet and Experian.

How do you build business credit fast? This is the way to know how long does it take to build business credit.

Where to Establish Business Credit During a Recessionary Period: Grainger Industrial Supply

Grainger Industrial Supply is also a true starter vendor. You can find them online at www.grainger.com. They sell safety equipment, plumbing supplies, and more, and they report to D&B.

It’s an awesome way to build business credit fast no personal guarantee.

These are some of our favorite companies that help build business credit.

Where to Establish Business Credit During a Recessionary Period: How to Do it

Need to know how to build your business credit?

Business credit is credit in a small business’s name. It doesn’t connect to an owner’s personal credit, not even if the owner is a sole proprietor and the only employee of the company.

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

This is how to build your business credit.

The Benefits

Considering that small business credit is independent from consumer, it helps to protect a small business owner’s personal assets, in case of a lawsuit or business insolvency.

Also, with two separate credit scores, a small business owner can get two different cards from the same merchant. This effectively doubles purchasing power.

Another benefit is that even startup ventures can do this. Visiting a bank for a business loan can be a recipe for disappointment. But building small business credit, when done the right way, is a plan for success.

Consumer credit scores are dependent on payments but also other elements like credit use percentages.

But for business credit, the scores really only hinge on if a small business pays its debts in a timely manner.

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

The Process

How do you build business credit?

Building small business credit is a process, and it does not happen without effort. A business will need to actively work to build business credit.

That being said, it can be done readily and quickly, and it is much more efficient than building individual credit scores.

Vendors are a big aspect of this process.

Performing the steps out of order will cause repetitive rejections. 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.

This is how you’re going to build business credit fast.

Business Fundability

A business needs to be fundable to lending institutions and merchants.

Therefore, a company will need a professional-looking web site and e-mail address. And it needs to have website hosting bought from a vendor like GoDaddy.

Also, business telephone and fax numbers ought to have a listing on 411.com.

Likewise, the company telephone number should be toll-free (800 exchange or the like).

A company will also need a bank account dedicated only to it, and it must have every one of the licenses essential for running.

This is how to build credit for your business.

Licenses

If you’re asking ‘how do I build my business credit?’ – this is how.

These licenses all have to be in the specific, accurate name of the small business. And they need to have the same business address and phone numbers.

So note, that this means not just state licenses, but potentially also city licenses.

Particularly during a recessionary period, you want to get this right.

Working with the Internal Revenue Service

Visit the IRS website and obtain an EIN for the business. You can build business credit for free, but at least they’re totally free. Select a business entity such as corporation, LLC, etc.

A small business can get started 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 lessen risk. And it will maximize tax benefits.

A business entity will matter when it concerns taxes and liability in case of litigation. A sole proprietorship means the business owner is it when it comes to liability and tax obligations. Nobody else is responsible.

This is how to build business credit for an LLC.

Sole Proprietors Take Note

Are you asking, ‘how to build my business credit?’ – here’s how.

If you run a company 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 company name. Hence, you can end up being directly accountable for all business debts.

Plus, according to the IRS, using this arrangement there is a 1 in 7 probability of an IRS audit. There is a 1 in 50 chance for corporations! Prevent confusion and noticeably reduce the odds of an IRS audit at the same time.

Beginning the Business Credit Reporting Process

Begin at the D&B website and get a totally 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 websites for the company. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for accuracy and completeness. If there are no records with them, go to the next step in the process.

In this way, Experian and Equifax will have something to report on.

This is how you can tell yourself – build my business credit!

Starter Vendor Credit

First you need to establish trade lines that report. This is also called starter vendor credit. Then you’ll have an established credit profile, and you’ll build business credit score.

And with an established business credit profile and score you can begin to get credit from retailers. And you’ll be able to get more universal credit, like with MasterCard and Visa.

These types 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 to start with, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are usually Net 30, instead of revolving.

So, 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, like within 30 days on a Net 30 account.

This is how to build business credit score.

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

Details

Net 30 accounts must 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 must pay back what you borrowed or the credit you used.

Start your business credit profile the right way and get vendor accounts reporting to the business credit reporting agencies. As soon as that’s done, you can then use the credit.

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

This is how to build business credit in 30 days.

Starter Vendor Credit – It Helps

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

You want at least 3, better with 5 to 8 of these to move onto the next step, which is retail credit. But you may need to apply more than one time to these vendors. So, this is to validate you are responsible and will pay timely.

For three excellent starter vendors, check above – Uline, Quill, and Grainger.

Where to Establish Business Credit: Accounts That Don’t Report

Non-Reporting Trade Accounts can also be helpful. While you do want trade accounts to report to at least one of the CRAs, a trade account which does not report can nonetheless be of some value.

You can always ask non-reporting accounts for trade references. Also credit accounts of any sort will help you to better even out business expenditures, therefore making financial planning easier. These are providers like PayPal Credit, T-Mobile, and Best Buy.

Retail Credit

Once there are maybe 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then move to retail credit. These are service providers which are more likely to offer revolving rather than net terms.

If you can, 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. It’s how to build business credit without using personal credit.

It’s how to build credit for a small business.

Fleet Credit

Are there perhaps 8 to 10 accounts reporting? Then move onto fleet credit . These are cards for companies where you can use this credit to buy fuel, and to fix, and take care of vehicles. Only use your Social Security Number and date of birth on these applications for verification purposes. But that’s only if it’s possible. Federal law requires a Social Security number when applying with banks. So if a credit card ultimately comes from a bank, then your SSN is a requirement.

For credit checks and guarantees, make certain to apply using the small business’s EIN.

More Universal Credit

Have you been responsibly handling the credit you’ve up to this point? Then move to more universal credit for places such as Visa and MasterCard. If you can, only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

If you have 14 or so trade accounts reporting, then these are attainable.

It’s how to build small business credit.

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

Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and deal with any inaccuracies 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.

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.

Update Your Records

Update the data if there are mistakes or the info is incomplete. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. And for Equifax, go here: www.equifax.com/business/small-business.

This is another way how to build credit for business.

Fix Your Business Credit

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

Get your company’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax business credit report at: www.equifax.com/business/credit-information.

Disputes

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

Fixing credit report mistakes also means you precisely spell out any charges you contest. 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.

Dispute your or your company’s Equifax report by following the instructions here: www.equifax.com/small-business-faqs/#Dispute-FAQs.

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

And D&B’s PAYDEX Customer Service contact number is here: www.dandb.com/glossary/paydex.

This is another one of many ways to build business credit.

A Word about Business Credit Building During a Recessionary Period

Always use credit responsibly! Never borrow more than what you can pay back. Keep track of balances and deadlines for repayments. Paying off punctually and fully will do more to elevate business credit scores than pretty much anything else.

Growing company credit pays off. Good business credit scores help a business get loans. Your lender knows the small business can pay its financial obligations. They recognize the company is bona fide.

The company’s EIN attaches to high scores and lenders won’t feel the need to require a personal guarantee.

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

Where to Establish Business Credit During a Recessionary Period: Takeaways

Getting merchant accounts for business credit signifies that you are on your way to obtaining great small business credit. Once you have more than five vendor accounts and they are all reporting with the bigger business credit bureaus, then you can begin to access retail credit. These three should quickly get you started.

And now you know where to establish business credit, even during a recessionary period.

The post Where to Establish Business Credit During a Recessionary Period appeared first on Credit Suite.

How Long Does It Take to Establish Corporate Credit? Not as Long as You May Think

Finally! The Answer to “How Long Does It Take to Establish Corporate Credit?”

How long does it take to establish corporate credit?

The quick and dirty answer is, not long. In fact, in just a few steps you can have a business credit profile ready to receive all your business account information and grow your business credit score.

However, often what people really mean when they ask the question “How long does it take to establish corporate credit?”is “How long does it take to build corporate credit?” The answer to that question is quite different. The process for establishing corporate credit initially is multi-step, but it doesn’t take all that long. In contrast, the process for building corporate credit doesn’t have as many steps, but it can take substantially longer. That is why it is important to start as soon as possible.

How Long Does It Take to Establish Corporate Credit from the Beginning?

If you start from square one, as your business it getting up and going, it will not take as long to establish corporate credit. That’s because there won’t be anything to undo. The goal is to make your business appear fundable to lenders as an entity separate from yourself. It can be done at any point. However, it is much easier and faster if you just start the process in the beginning. What’s the process?

How to Establish Corporate Credit

Establishing small business credit is a process. It is something that has to happen intentionally. It does not happen passively in the same way personal credit does. Once you have your business set up the right way however, the whole thing can happen pretty quickly.

You absolutely have to complete the steps in the right order. Not doing so will result in repeated denials. No one wants that.

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

How Long Does it Take to Establish Corporate Credit: Set Up Separate Contact Information for Your Business

Your business address, telephone number, fax number, and email address should all be separate from your personal ones. Ensure your number is from a toll-free exchange and that it has a 411 listing. You can take care of that here: http://www.listyourself.net.

Take note that your email address should not be through a free service such as Yahoo or Gmail. Rather, it should have the same URL as your company website. Can you guess the next point? You need a professional website with paid hosting through a service such as GoDaddy. These days, if you don’t have a website you may as well not exist. If you have a bad website, it’s even worse. Just get it done right from the beginning.

In truth, when it comes to “How long does it take to establish corporate credit?”, the answer is however long it takes to get your website built professionally. The rest of the steps can be completed while that is going on. Then, when your website is operational, you should have an established file and be ready to start building your business credit score.

How Long Does It Take to Establish Corporate Credit: Incorporate Your Business

The first thing you have to do after you have separate contact information is formally incorporate your business. The reason you need the contact information first is so that you can use it during the incorporation process.

Why incorporate? If you are organized as a sole proprietorship or partnership, all business transactions are just going to hit your personal credit. That is because there is no legal separation between you and your business. You are personally liable for all business debts.

You need to organize as a corporation, S-corp, or LLC. Which one you choose will depend on the level of liability protection you need and how much you want to spend. Any of them will serve the purpose of separating your business from you for the purpose of establishing business credit.

How Long Does it Take to Establish Corporate Credit: Get the Digits

Next, there are two important identifying numbers you need to apply for. The first is an EIN. This is a number for your business similar to you personal SSN. You can get one for free through the IRS website.

Next, you will need a D-U-N-S number. This is also free, and you get it on the Dun & Bradstreet website. You cannot have a credit file at Dun & Bradstreet without a D-U-N-S number. Since they are the largest and most commonly used corporate credit reporting agency, you definitely need a D-U-N-S number.

How Long Does it Take to Establish Corporate Credit: Dedicated Bank Account

You also need a dedicated corporate bank account that you use only for business transactions. This helps separate your business from yourself. Not only that, it will also help keep business and personal expenses separate for tax purposes.

All of these steps can happen pretty fast. Incorporation takes a little time, as does building a website. However, if you do it all on the front end you can speed the process along. If you are taking these steps after your business is already up and running, it could slow things down a bit.

How Long Does It Take to Establish Corporate Credit, or How Long Does It Take to Build Corporate Credit?

The next steps in the process are geared toward building your corporate credit after your credit file is open. The thing is, you have to get corporate accounts reporting to the corporate credit reporting agencies for your credit score to start building. This can be tricky, as most lenders consider no credit to be equal to bad credit. In the beginning of course, you have no credit.

If you do have credit already, but it’s bad, these steps can help improve it. However, it will take longer. It is always faster to build from zero rather than from a negative number.

How Long Does It Take to Build Corporate Credit? Not as Long as It Would Without the Vendor Credit Tier

First you need to build trade lines that will report payments. This is also referred to as the vendor credit tier. These vendors will extend net 30 terms on invoices without a credit check. Then they report your payments to the credit reporting agencies. This is how you get initial accounts reporting positive payment history.

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

Not all vendors are in the vendor credit tier. Of those that are, there are a select few that are easier to get started with. They can be used as stepping stones to gain more trade lines and thus, build your credit faster. Here are a few of those easiest to get started with.

Uline

Uline is online at www.uline.com. They sell shipping, packing, and industrial supplies. They report to D&B.

You have to have a D-U-N-S number. They ask for 2 references and a bank reference. The initial few orders may have to be prepaid to initially get approval for Net 30 terms.

Quill

Quill is another starter vendor. You can find them online at www.quill.com. They sell office, packaging, and cleaning supplies. They also report to D&B as well as Experian.

Because Quill reports to two separate credit reporting agencies, you get two credit experiences with them. Place an initial order first unless the D&B score is already established.

Typically, they put you on a 90-day prepayment schedule. If you order items each month for 3 months, they commonly approve you for a Net 30 Account.

Grainger Industrial Supply

Grainger Industrial Supply is online at www.grainger.com. They sell safety equipment, plumbing supplies, and more. They report to D&B. You must have a business license, EIN, and a D-U-N-S number.

For under a $1000 credit limit they approve almost anybody with a business license.

How Long Does it Take to Establish Corporate Credit: A Tip for Going Even Faster

One way to speed up the process is to ask vendors that you already work with if they will extend credit and report your payments. This could even include utilities, rent payments, and telephone companies. Internet providers are another option. Since you are already making payments, you could instantly have several accounts reporting positive payment history without taking on any new debt.

Remember they are not required to report payments, but some will if asked.

After you have enough accounts reporting, its time to move on to the next credit tier.

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then you can apply for accounts in the retail credit tier. These are service providers which include Office Depot and Staples.

Fleet Credit Tier

Once there are enough accounts reporting from the retail credit tier you can begin to apply for accounts in the fleet credit tier. These are companies such as BP and Conoco. Use this credit to buy fuel, as well as to repair and maintain vehicles.

Cash Credit Tier

The next tier, the cash credit tier, is the goal. One you have enough accounts reporting from the fleet credit tier, you can move on up to the cash credit tier. These are businesses such as Visa and MasterCard.

When applying for cards in any tier, only use your SSN and date of birth for verification purposes. For credit checks and guarantees, use your EIN instead.

How Long Does It Take to Establish Corporate Credit? Credit Monitoring

Know what is happening with your credit. Make certain it is being reported and take care of any errors as soon as possible. Get in the practice of taking a look at credit reports regularly.

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

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

Update Your Information

Update your business contact information if you need to so that they have your correct, separate business phone number and address. Incorrect information will only slow down your business credit efforts. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. Equifax updating can be found here: www.equifax.com/business/small-business.

Fix Your Business Credit

Mistakes on your credit report will also slow down the process. You can dispute any inaccuracies in your records. Mistakes in your credit report(s) can be corrected,but the CRAs often want you to dispute in a particular way.

Get your business’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax business credit report at: www.equifax.com/business/credit-information.

How Do You Dispute

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

Fixing credit report inaccuracies also means you offer support for any charges you contest. Make your dispute letter as clear as possible. Be specific about the concerns with your report. Use certified mail to have proof that you mailed everything.

Dispute your or your company’s Equifax report by following the instructions here: www.equifax.com/small-business-faqs/#Dispute-FAQs.

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

And D&B’s PAYDEX Customer Service telephone number is here: www.dandb.com/glossary/paydex.

So How Long Does It Take to Establish Corporate Credit?

It’s hard to say. If you are starting from scratch it won’t take as long. You can get things headed the right way, right away. You won’t be fighting an already bad score or trying to back track with incorporation and contact information. Also, you will not be trying to correct mistakes on your report. If you are already up and running, it can take longer, but it still can be a relatively fast process.

Building your corporate credit will take substantially longer than getting the file established. However, if you work the process the right way and handle the credit you get responsibly as it comes, it will not take as long as you may imagine. It builds like a snowball and grows bigger, stronger, and faster as time goes on.

The post How Long Does It Take to Establish Corporate Credit? Not as Long as You May Think appeared first on Credit Suite.

Leading Five Reasons to Establish Business Credit!

Way too many entrepreneur are utilizing their individual credit history to fund the launch, development or development of their service A bulk of entrepreneur have no suggestion what organisation is or exactly how to develop it. By adhering to a couple of easy actions any kind of local business owner can developing organisation credit scores, for that reason, dividing their individual credit report from their organisation credit scores.

When local business owner make use of individual bank card to spend for overhead, the financial obligation of business reports back to their individual credit score records which reduces their ratings since their service financial debts harm their individual financial obligation to earnings proportion.

To aid avoid local business owner from harming their individual credit report, every entrepreneur ought to adhere to the easy actions of developing company credit rating. By developing company credit rating the financial debt of business will certainly report to business debt data as well as not the individual credit rating documents. Developing company credit history will certainly likewise aid business construct a solid company credit rating documents so fundings, credit lines wont call for business proprietor to authorize an individual warranty.

Below are simply a couple of reasons every entrepreneur must develop company debt.

You angle anticipate to stroll right into a financial institution as well as ask for an organisation financing with no service credit history or service background. By developing an excellent service credit score account you will certainly be able to safeguard the funding your service requirements.

2. You would certainly still be lawfully accountable if you utilized your individual credit score to fund your company if your company ought to fall short.

Thats right, service credit scores prices are generally reduced than individual credit rating prices. A couple of portion factors in rate of interest mean thousands of bucks in the lengthy run

Drift your service via hard times. By developing service credit rating you will certainly be prepared for the down time.

Allows face it, without the loan you require to fund the launch or growth of your service you actually wont be in company at all. Do not make the blunder of utilizing your individual financial resources to fund you organisation.

The are numerous, a lot more reasons you ought to develop service credit report. We have all listened to the claiming, “maintain organisation expenditures different from individual expenditures,”? The only method to do that is to establish your service appropriately to begin with by developing service debt.

If you want discovering …

-What civil liberties does an entrepreneur have if there is inaccurate details on a credit score record?
-How do I get an organisation credit report?
-What work lending institutions take a look at in order to expand organisation credit scores?
-Where do you locate firms that approve credit report?
-Which business report to business credit rating bureaus?
-What bank card business do not need individual assurances?

I recommend you begin the education and learning procedure of learing exactly how to develop service credit report!

By complying with a couple of straightforward actions any type of company proprietor can developing company credit scores, as a result, dividing their individual credit score from their service credit history.

To assist protect against service proprietors from harming their individual credit score, every service proprietor must adhere to the straightforward actions of developing company credit report. By developing company credit rating the financial obligation of the company will certainly report to the company credit score data as well as not the individual credit scores documents. Developing service credit rating will certainly additionally aid the organisation develop a solid service credit rating documents so fundings, lines of credit scores wont call for the company proprietor to authorize an individual warranty.

You angle anticipate to stroll right into a financial institution as well as ask for an organisation car loan with no company credit report or organisation background.

The post Leading Five Reasons to Establish Business Credit! appeared first on ROI Credit Builders.

Leading Five Reasons to Establish Business Credit!

Below are simply a couple of reasons every entrepreneur must develop company debt.

2. You would certainly still be lawfully accountable if you utilized your individual credit score to fund your company if your company ought to fall short.

Thats right, service credit scores prices are generally reduced than individual credit rating prices. A couple of portion factors in rate of interest mean thousands of bucks in the lengthy run

Drift your service via hard times. By developing service credit rating you will certainly be prepared for the down time.

If you want discovering …

I recommend you begin the education and learning procedure of learing exactly how to develop service credit report!

You angle anticipate to stroll right into a financial institution as well as ask for an organisation car loan with no company credit report or organisation background.

The post Leading Five Reasons to Establish Business Credit! appeared first on ROI Credit Builders.