Building Your Commercial Fleet of Sprinter Vans While You Build Your Business and Its Credit

Want or need sprinter vans for your business? Then you should be building business credit!

Your business doesn’t start off with good business credit already built. In much the same way, you probably didn’t start with any vehicles. Or, at least, not with business vehicles you wanted to keep. And even if you bought your business fully created, you can still build it to greater heights. For all three goals, it pays to work in an orderly fashion. Step by step, it all works together.

Building business credit will mean getting vendor accounts. 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!

But let’s start off with some basics.

How Do Sprinter Vans and Business Credit Work Together?

In general, the term ‘sprinter van’ is used more or less synonymously with ‘cargo van’. But it’s actually the name of a line of vans made by Mercedes-Benz. However, much like the words ‘Kleenex’ and ‘tissue’, the brand name has entered the lexicon as a synonym for a more general term.

Sprinter Vans and Business Credit Together

Sprinter vans tend to be a bit taller than full-sized SUVs. Per Zip Recruiter, you generally don’t need a special commercial license to drive a sprinter van. But in some states you may need a chauffeur’s license if you’re driving passengers.

According to Car and Driver, “over 50 percent of Sprinter vans that are sold in the U.S. are used for commercial purposes. The other half of these vans are sold as passenger shuttles and recreational vehicles, such as limousines, office vans, family vans, wheelchair accessible vans, and golf vans.”

Sprinter vans can currently cost between $35,000 and $45,000 and that’s before you add options.

Building Business Credit the Right Way

Start with building business credit. But you can’t start with high limits. First 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.

The Process

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

But Just 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 are approved for $1,000 in vendor credit and use all of it, you must pay that money back in a set term such as within 30 days on a Net 30 account. However, there are some revolving accounts which are still considered to be starter vendors.

Vendor Credit Accounts

You must pay net 30 accounts in full within 30 days. And you have to 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.

To start your business credit profile the RIGHT way, you need to get approved for vendor accounts that report to the business CRAs. Once that’s done, you can then use the credit, pay back what you used, and the account is reported to Dun & Bradstreet, Experian, or Equifax, or some combination.

Details

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 often leave your SSN off the application since this credit isn’t on offer through a bank.

With and EIN and not your SSN on the application.  the credit issuer pulls your EIN credit. They see a solid profile and score, and as a result can approve you for more credit. Keep in mind, credit through a bank will require your SSN. It’s an anti-money laundering requirement under federal law.

Vendor Credit Cards

Vendor credit cards will get business credit building for your business going. Once you’ve added payment experiences from three vendors, and they have reported to business CRAs like Dun & Bradstreet, you can start qualifying for fleet credit. Make sure business credit cards don’t report on your personal credit

Every step and every credit provider is designed 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.

Demolish your funding problems with 27 killer ways to get cash for your business.

Business Credit Benefits

Keep in mind, business credit is independent of personal. Applying for it often won’t harm your personal credit scores, although it can if you offer a PG and then fail to pay. An inquiry will also impact personal credit. Too many inquires can hurt your ability to get an approval. Building this asset can only help your business. You can help your future business right now.

Vendor Credit Benefits

You MUST have 3 or more vendor accounts reporting to move onto more credit with higher limits and better terms, more reporting accounts are even better. It will take 30-90 days for those accounts to report, 60 days on average.  Do NOT apply for tier 2 credit without having 3 or more accounts first.

Getting a Vendor to Pull Credit Under your EIN

Remember, there is no Social Security requirement for starter vendor credit. This is unlike bank loans and more universal business credit 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.

But note: some creditors will still require an SSN for verification purposes. You should present your SSN in this situation but make sure you aren’t agreeing a PG or personal credit check.

Building Business Credit – What You Really Need to Know

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

Using Business Credit Vendors

Check out three of our favorite starter vendors:

• 76
• Wex Fleet
• Marathon

All three come from Wex

76

Phillips 66 Company owns 76. It has more than 1,800 retail fuel sites in the United States. This card reports to D&B and Experian. But keep in mind: before applying for multiple accounts with WEX Fleet cards, make sure to leave enough time in between applying so that they don’t red flag your account for fraud.

Qualifying for 76

To qualify, you need the following:

• Your corporate entity must be in good standing with the applicable Secretary of State
• An EIN
• Company address matching everywhere
• D-U-N-S number from Dun & Bradstreet
• Your business license (if applicable)
• A business bank account
• Business phone number with a 411 listing

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 you’ve been in business less than a year. Apply online or over the phone. Terms are Net 15. You can use this card at any P66, 76, or Conoco fueling location.

Wex Fleet

They report to Experian and D&B. Wex offers 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. But before applying for multiple accounts with WEX Fleet cards, make sure to have enough time in between applying, so that they don’t red flag your account for fraud.

If you’re not approved based on business credit history, or been in business for at least a year, then a $500 deposit is needed or a Personal Guarantee. Apply online or over the phone. Terms:  Net 15 (Wex Fleet Card), Net 22, or revolving (Wex FlexCard).

Qualifying for Wex Fleet

To qualify, 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
• Business phone number with a 411 listing

Demolish your funding problems with 27 killer ways to get cash for your business.

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. Remember: before applying for multiple accounts with WEX Fleet cards, make sure to have enough time in between applying so they don’t red-flag your account for fraud.

Qualifying for Marathon

To qualify, 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 with a 411 listing

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

Let’s move onto what’s called fleet credit.

Fleet Credit

Fleet credit comes after starter vendors. It comes from places like Gulf and Exxon. You can use it to:

• Buy fuel
• Maintain vehicles of all sorts, including sprinter vans
• Repair vehicles

Even businesses which don’t have big fleets can still benefit. Yes, fleet credit works for sprinter vans. These are usually gas credit cards.

There may be a minimal time in business requirement. If your business can’t make a time in business requirement, you may be able to instead offer a personal guarantee or give a deposit to secure the credit.

Now that you’ve got a bunch of cards to support your fleet, it’s time to look at vehicle financing to buy the fleet!

Vehicle Financing

Much like you probably didn’t buy your personal vehicles outright, financing is a great way to get a vehicle now, without having to wait until you can just pay cash and drive it off the lot. With a fleet car, your choices are usually buying or leasing. Providers include banks like Bank of America or the financing arm of the manufacturer, such as Chrysler Capital.

Using Business Credit for Vehicle Financing

You can even finance a vehicle purchase or lease through our Business Credit Builder. These offers are in Tier 4, so they’re going to have certain requirements that business credit neophytes just won’t be able to meet. Lenders will want to see that you have the income to support the purchase.

Consider Ally Car Financing.

Ally Car Financing Through Credit Suite

Ally provides personal financing. But they will also report to business credit bureaus. If your business qualifies for financing without the owner’s guarantee, you can get financing in the business name only. Ally will report to D&B, Experian, and Equifax.

Qualifying for an Ally Commercial Line of Credit

You will 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
• Bank reference
• Fleet financing references

If you use a personal guarantee, Ally will not report to the personal credit bureaus unless the account defaults.

Qualifying for Ally Commercial Vehicle Financing

You can get a lease or a loan. To qualify, you need most of the same things as you need for an Ally Commercial Line of Credit, except for a bank reference and fleet financing references. There is no minimum time in business requirement. Apply in person only, as the dealer will advise if you have an approval or will need to provide a Personal Guarantee (PG).

Ford Commercial Vehicle Financing Through Credit Suite

Ford offers several commercial vehicle financing options. These include loans, lines, and leases to actual business entities. This is not for sole proprietorships. You can get a loan or a lease.

Ford may ask for a Personal Guarantee (PG) if you are not approved on the merit of your application. Apply at the dealership. Ford will report to D&B, Experian, and Equifax.

Qualifying for Ford Commercial Vehicle Financing

To qualify, 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
• Strong business credit history, with a good Experian business credit score.

Now that you’ve got the cars and the cards, it’s time to look at using your business credit for vehicle financing.

Demolish your funding problems with 27 killer ways to get cash for your business.

Vehicle Financing

With commercial vehicle financing, business owners may be required to personally guarantee vehicle loans.  If you are a co-borrower the loan will most likely report to your personal credit report. Starting off by giving a personal guarantee means you can get money, and start building your commercial fleet, now instead of later.

PG (Personal Guarantee) Financing

According to Investopedia, a personal guarantee is “an individual’s legal promise to repay credit issued to a business for which they serve as an executive or partner. Providing a personal guarantee means that if the business becomes unable to repay the debt, the individual assumes personal responsibility for the balance. Personal guarantees provide an extra level of protection to credit issuers who want to make sure they will be repaid.”

When you provide a personal guarantee, you are adding your Social Security number to the application. You should expect a hard inquiry. You’re also adding the details of your personal income to the application.

No PG (Personal Guarantee) Financing

With no PG financing, you can get higher limits and better terms. Continue to build exceptional business credit and pay your bills on time. In general, the following will eliminate the need to provide a personal guarantee for this type of financing:

• good business credit
• a decent amount of time in business or
• good personal credit

Much like with any other kind of business borrowing, the more assurances you can give the lender, the better.

Get Sprinter Vans with Business Credit: Takeaways

Use business credit to buy everything you need to run a fleet, from fuel to service. And use auto financing to buy your sprinter vans. Help make your business’s future bright – today! Let’s get together and have a conversation about getting started.

The post Get Sprinter Vans with Business Credit: We Show You How appeared first on Credit Suite.