Tag: Tier

Check Out These Tier 4 Business Credit Vendors That Can Help Strengthen Your Business Credit Score

At Credit Suite, we talk about building business credit by working through the vendor credit tiers. These tiers are how we classify vendors based on their ease of credit approval. Tier 1 vendors are likely to extend net terms based on meeting some basic Fundability guidelines. Meanwhile, Tier 4 vendors are likely to require a strong PAYDEX, among other things.

Are Tier 4 Business Credit Vendors Really Necessary?

First, not all vendors fall into tiers. Tiered vendors report payments to at least one business credit reporting agency. Vendors that do not report do not fall into a tier.  However, don’t discount them. They can still be very useful to your business.

Vendor credit as a whole is important to building a strong business credit portfolio. Still, we get questions from potential clients wondering if it is necessary to work the tiers in order.  Furthermore, is it necessary to have accounts from all the tiers?  Can you just get accounts in Tiers 1 and 2 and then stop?

It seems to some that if you have enough accounts in Tier 1 and Tier 2 to qualify for Tier 3 vendors, that should be enough. Enough for what though? Yes, you may have a decent business credit score at this point, but these accounts are not going to be enough to properly fund your business.  After all, that is the point of a strong business credit score. The goal is to qualify for as much funding as possible to run and grow your business.

Do You Have to Work Through the Business Credit Tiers in Order?

There are those out there that hold the idea that there is no need to work through the tiers. Some business owners will tell you they were able to skip straight to Tier 4 without applying for credit from vendors in tiers 1-3 first. Honestly, it’s possible.

If you have a large amount of income or want to use a personal guarantee, and if you have a long time in business, you MAY be able to get credit from Tier 4 vendors and even credit cards, without working through the other tiers.

So What’s the Point?

The whole point of the Credit Suite vendor tiers is to help our customers mix-up the “secret sauce” of business credit. Building business credit this way allows you to limit using a personal guarantee and protect your consumer credit.

It also allows for you to build your business credit portfolio and your business credit score at the same time. Even better, this way allows your business to scale and grow faster, because you can use the funding for things you need while you are building business credit.  Vendor accounts can help with a number of expenses including marketing, inventory, supplies, and more.

You do not have to incur large amounts of personal loans from the beginning.  There is no need to wait until you reach a certain point to start utilizing credit in the name of your business. Rather, you can work on building business credit and use business credit from the beginning. As you do so responsibly, you will begin to qualify for vendors that offer more money and better terms, hence the other tiers.

By continuing on with Tier 4 business credit vendors, you will have more access to what you need to run your business, expand your business credit portfolio, and continue building your business credit.

Tier 4 Business Credit Vendors

These vendors require a strong business credit score for approval, but they also report payment history to the business credit reporting agencies. Here are a few examples.

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.  They  will report to Experian and Equifax.

Ally offers a Commercial Line of Credit. To qualify, you need:

  • To be an entity in good standing with the Secretary of State
  • An EIN
  • A business address- matching everywhere
  • A D-U-N-S number
  • All business licenses (if applicable)
  • A business bank account
  • Bank reference
  • Fleet financing references

If a personal guarantee is used Ally will not report to the personal credit bureaus unless the account defaults.

You can also get a lease or a loan through Ally.

To qualify, you need:

  • To be an entity in good standing with the Secretary of State
  • An EIN
  • A business address- matching everywhere
  • A D-U-N-S number
  • All business licenses (if applicable)
  • A business bank account

There is no minimum time in business requirement.

You can only apply in person, and the dealer will let you know if you are approved or if a Personal Guarantee (PG) is necessary.

Brex

Brex is a business money management system that integrates with your accounting software. It allows you to track expenses and, depending on the level of service you choose, can also help with paying bills and controlling spending.

The easiest way to use Brex for both managing finances and building business credit is to open a Brex Cash account. Brex is not a bank, but rather a banking alternative. They do have a partnership with the FDIC, so your funds are secure,

They have a couple of options, but the one that falls into Tier 4 is similar to a traditional business credit card when it comes to limits. Instead of checking your personal credit score, they base approval and credit limits on business financial information.  This may include available cash, spending patterns, and more.

If you qualify for this card, your entire balance will be paid monthly.  This makes it more like net financing, as you cannot carry a balance. Brex requires an average bank balance of $1M to qualify for net 30 terms.

Ford Commercial Vehicle Financing Through Credit Suite

Ford offers several commercial vehicle financing options. These include loans, lines, and leases to actual business entities. You can get a loan or a lease.

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

  • To be an entity in good standing with Secretary of State
  • An EIN
  • A business address- matching everywhere
  • A D-U-N-S number
  • All needed business license(s)
  • A business bank account
  • Strong business credit history
  • A good Experian business credit score

Frost Bank Business Rewards Credit Card

Frost bank requires $5M annual revenue to avoid PG. Also, you have to apply in person. If you apply online a PG may be required regardless. They only offer financing to current customers, and there is no minimum time in business requirement.

Don’t Stop Building Business Credit

Business credit is something you continue to build upon and improve, not a path to a final destination. This is much like a business itself, and the two go hand in hand of course. You want your business to continue to grow and thrive indefinitely, and tier 4 business credit vendors can help with that.

The post Check Out These Tier 4 Business Credit Vendors That Can Help Strengthen Your Business Credit Score appeared first on Credit Suite.

How to Use Tier 3 Vendors to Build a Strong Business Credit Portfolio

Hitting the 5 year mark is a tremendous achievement when it comes to running a business. Especially considering that nearly half of all companies fail in their first 5 years, and about ⅔ fail in the first 10 years. Truly, your company has beaten the odds.

Tier 3 Vendors are a Gateway to a Strong Business Credit Portfolio

With half a decade under your belt, your business should be profitable. However, you may still be using your personal credit on occasion. Maybe you built initial business credit and then stopped, thinking that you were done.

For example, maybe you already have several vendors reporting from the first couple of vendor tiers. Vendors such as Uline, Quill, and Grainger are great to work with. They offer net terms with fewer requirements than most business credit cards.  Even better, they report your payment to the business credit CRAs. Working with them helps you build an initial business credit score. But you can’t stop there.

Not only do you want to keep building your business credit score, but you want to build a well-rounded business credit portfolio. This includes much more than Tier 1 and 2 vendors, and even more than business credit cards.

Here are some other factors that you need to consider when it comes to a strong business credit score and portfolio.

Tier 3 Vendors

If you stopped at tier 2, thinking you were done, you are missing out. There are a ton of tier 3 vendors that can help you run your business more smoothly and manage cash more efficiently.

These are vendors that require a longer time in business and an established business credit score. They typically like to see regular business revenue before they will offer net terms. Some even offer revolving credit similar to a credit card. They are an important part of a strong business credit profile, and they are essential to building the strongest business credit score possible.

By the time you get to Tier 3 vendors, you should have at least 6 trade accounts reporting. That’s enough to help you get approval with vendors in tier 3, but not enough to be finished. You need at least 3 of these vendors reporting, making for a total of 9 trade accounts on your business credit report.

Here are some examples.

Crown Office Supplies

You can get paper and other office supplies through Crown Office Supplies. They report payments to all three of the major business credit reporting agencies. These are Dun & Bradstreet, Experian, and Equifax. The major benefit here is that it can be hard to find vendors that report to Equifax.

To qualify, you will need:

  • To be an entity in good standing with Secretary of State
  • An EIN
  • A business address that matches everywhere
  • A D-U-N-S number
  • Business license (if applicable)
  • Business bank account

There is a membership fee of $99 annually upon approval, but payment of this fee is reported to the business credit bureaus as well.

Gempler’s

Gempler’s sells work supplies and products, such as:

  • Outdoor workwear and safety supplies
  • Pest management products
  • Tires, and footwear

They report to Dun and Bradstreet. You have to place your initial order for over $50 and select the “Invoice me” option. Then, they will pull your credit. If you’re not approved, make sure to pre-pay for your order, and keep purchasing and choosing the “invoice me” option until you’re approved for a Net 30 account.

Summa Office Supplies

Along with the large variety of office supplies, Summa also offers a number of downloadable products. They offer Net 30 terms with up to a $2000 limit. A minimum $80.00 purchase is required,for the first order only, for them to report.

To qualify a business needs:

  • To be an entity in good standing with the Secretary of State
  • An EIN
  • Business address- matching everywhere.
  • D-U-N-S number
  • Business license- if applicable
  • Business bank account

After Tier 3 Vendors, Consider Working with Nonreporting Trade Accounts

Even nonreporting trade accounts are important to a business credit portfolio. Do not neglect them. There is no need to put everything on a credit card.  Even vendors that do not report can help you get the things you need without dipping into cash reserves, while allowing you to save revolving credit for larger concerns or times when trade credit is not available.

Don’t Stop Building Your Business Credit Portfolio

What’s the goal of a strong business credit score? It’s to help you build a business credit portfolio for your business. Of course, with a strong score, you can add lines of credit and credit cards to that portfolio.  However, the vendors you use to build your score, along with other vendors, are very useful additions.  A well-rounded business credit portfolio is key to business success, and Tier 3 vendors are a bridge to get you there.

The post How to Use Tier 3 Vendors to Build a Strong Business Credit Portfolio appeared first on Credit Suite.

How to Use Tier 2 Business Credit Vendors to Survive Inflation

Tier 2 vendors can help you survive inflation. But how do you get them, and how can they help? First, you have to understand what they are.

What’s Special About Tier 2?

Tier 2 vendors are those vendors that you should qualify for accounts with after you have enough tier 1 vendors reporting. Honestly, these vendors open up a whole new range of purchasing power. Of course, tier 1 vendors are useful. After all, they sell things you can use. However, when it comes to building business credit, their main purpose is to get initial accounts reporting to begin building your business credit score.

Truly, there are more tier 2 vendors than there are tier 1. Yet, they will not approve you for credit without at least some business credit history, or a personal guarantee. By starting with tier 1 vendors, you can often avoid using a personal guarantee in tier 2.

Is a Personal Guarantee Bad?

No, it’s not necessarily bad. Still, it may not be something you want to get into. If you use a personal guarantee to get business credit, and your business cannot pay its obligations, you will be personally liable for the debt.

It’s best, if possible, to limit the use of a personal guarantee. When it comes to large, traditional business loans, you will not have a choice. A personal guarantee will almost always be required. So, when you can get funding without one, go for it.

Now, here are some examples of vendors that fall into tier 2. All vendors require the basics of a fundable foundation for approval.  This includes:

  • Entity in good standing with Secretary of State
  • EIN
  • Business address- matching everywhere
  • D-U-N-S number
  • Business license- if applicable
  • Separate, dedicated business bank account
  • Business phone number listed in 411 directory

Some vendors have additional requirements as well.

Amazon

As you know, Amazon offers online shopping for virtually anything you can imagine. Better yet, they report to Dun & Bradstreet and Equifax.

Qualification requirements are the basic elements of a fundable foundation as listed above.

For Amazon, there is no minimum time in business if you have a strong business credit history. Yet, they will pull business credit reports to make sure there is at least some established business credit history. As a result, you must have a D&B PAYDEX score of 80 or higher and a good Equifax business credit score.

A PG is not required, but it may increase the likelihood of approval if you have a young or small business and not enough business credit history.

Remember, if you work through the Business Credit Builder program, starting with tier 1 vendors, you will likely have the business credit history you need.

Brex

With Brex, you have a couple of options. The easiest way to use Brex for both managing finances and building business credit is to open a Brex cash account.

Everyone who opens a Brex cash account gets a corporate card. It works just like a debit card, as it draws from your Brex cash balance daily. However, unlike a debit card, Brex reports these payments to Dun & Bradstreet. By doing so, they help build your business credit score.

Since this card is secured by the balance in your Brex cash account, and limited to that balance, you do not have to worry about underwriting.

Alternatively, they offers a more traditional card for those who qualify. This option is not limited to the balance in your Brex cash account.  In contrast, it offers limits that will go up to 20x higher than that of a typical corporate card. Instead of checking your personal credit score, they base approval and credit limits on business financial information. This includes available cash, spending patterns, and more.

If you qualify for this card, your entire balance must be paid monthly.

Home Depot

Obviously, Home Depot provides products and services for home improvement needs. Their Commercial Revolving Charge Card offers your business payment flexibility. Even better, it also provides a boost to your business credit profile by reporting to D&B, Experian, and Equifax.

Qualifications in addition to basic fundable foundation elements listed above for Commercial Account with Pay in Full Terms:

  • At least 3 years in the business
  • Good Experian business credit score and D&B PAYDEX score of 80 or higher

Now, they do prefer to see a minimum of 2 accounts reporting. However, they will consider the merit of the overall application. Still, if there is not enough business credit history, or if you have been in business for less than 3 years, a Personal Guarantee(PG) is required.

Additional Qualifications for Commercial Revolving Charge Account:

  • No minimum time in business
  • You must have a good Experian business credit score and D&B PAYDEX score of 80 or higher
  • A Personal Guarantee (PG) is required for the revolving charge account

Quill

Quill sells a variety of goods. Generally, these include office and cleaning supplies, among other things. As for business credit building, they report to Dun & Bradstreet. At first, they may ask you to do prepaid orders of $100.00.  After they approve Net 30, a minimum purchase of $50.00 is necessary to report.

Additional qualification requirements:

  • Good D&B PAYDEX score of 80 or higher
  • At least 3-5 trade accounts reporting on D&B credit report
  • Must be an established business for 6 months

Also, new businesses or businesses with no credit history with D&B may need to prepay purchases for 3 consecutive months until Net 30 is approved.

How to Use Vendor Credit to Prepare for Inflation

Obviously, money doesn’t go as far when inflation takes hold. But, by having vendor credit available to use, you can buy things you need before prices rise, or rise further. To beat inflation, use vendor accounts to buy the things you need regularly while prices are lower, and you’ll be ahead of the game.

The post How to Use Tier 2 Business Credit Vendors to Survive Inflation appeared first on Credit Suite.

Tier 1 Business Credit – Dive Into the Truth

There are a lot of questions out there about the business credit tiers. A lot of business owners claim they have strong business credit and they never even considered the tiers.  There is a school of thought that they are not necessary and a waste of time. Tier 1 business credit gets a particularly bad rap as being unnecessary.  It’s time we dive into the truth about Tier 1 business credit.

The Truth About the Tiers and Tier 1 Business Credit

What are business credit tiers? Actually, the tier system is just how Credit Suite ranks vendor credit based on how easy it is to get approval. When you work through our business credit builder, you start by setting up a fundable foundation. Once your business is set up properly, you begin applying for Tier 1 business credit vendors.  After you have enough of those reporting payments to the business credit reporting agencies, you can move on to Tier 2, Tier 3, and finally Tier 4 and advanced vendors.

First, let’s get one thing out of the way.  The truth is, some business owners can build strong business credit without working through the tiers.  That’s a fact.  Here’s another truth. Most business owners can’t. Honestly, several factors need to fall into place perfectly to be approved for business credit accounts without working through the tiers in order.

These include but are not limited to:

  • Substantial income
  • Willingness to give a personal guarantee
  • Excellent credit
  • High value collateral and the willingness to use it to fund the business

However, the tiers are the key to gaining access to advanced vendors and more business funding without these things.

The Benefit of Working Through the Tiers in Order

The vendor tiers are set up by Credit Suite. It’s a sort of formula to allow business owners to build their business credit without any more personal guarantee than necessary. So, even if you are able to skip them, it’s not wise to do so. The tiers can still be useful as a way to limit your personal guarantees when it comes to business funding.

When you set your business up the right way, and work through the vendor tiers in order, your business can eventually fund itself with minimal impact on personal credit.

A Deep Dive Into Tier 1 Vendors

What makes Tier 1 vendors so special? These are starter vendors that will extend net terms on invoices. They do so with less focus on credit score than other vendors and creditors. Not only that, but they will also report those payments to the business credit reporting agencies.

However, it only works if your business has a fundable foundation. That includes having professional business contact information, an EIN, being incorporated, and having a D-U-N-S number, among other things.

How Do You Find Tier 1 Business Credit Vendors?

Since most vendors do not classify themselves into tiers, how do you find them? A simple search will give you a few options.  However, the information changes without warning.  We are always finding new vendors that fit into Tier 1, and often we discover vendors have changed their requirements or reporting standards in ways that make them no longer Tier 1 vendors.

Here are just a few Tier 1 business credit vendors we know of currently.

76

76 offers a fleet card that reports to Dun & Bradstreet and Experian.

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 listed on 411

They will ask for your SSN for identification purposes. You can use a $500 deposit instead of using a personal guarantee if you have less than one year in business. Their terms are net 15.

The CEO Creative

The CEO Creative reports to Equifax and Credit Safe. They offer low prices on electronics, wireless earbuds, cameras for cars and trucks, speakers and more. They also have quality custom design and branding services. You can create your own logo, business cards, and business accessories.

There is a membership fee, and the minimum order before they will report to the business credit bureaus is $40.

To qualify, you need the following:

  • Your corporate entity must be in good standing with the applicable Secretary of State
  • Business credit history
  • EIN
  • Company address matching everywhere
  • Your business license (if applicable)
  • A business bank account
  • At least 120 days in business

Grainger Industrial Supply

Grainger sells hardware, power tools, pumps and more, in addition to performing fleet maintenance. They report to Dun and Bradstreet.

If a business doesn’t have established credit, they will want to see additional documents like accounts payable balance and business financials. Terms are Net 30, Net 45, Net 60, or Net 90.

To qualify, you need:

To be an entity in good standing with Secretary of State

  • EIN
  • Business address (matching everywhere)
  • D-U-N-S number
  • Business license (if applicable)
  • Separate, dedication business bank account
  • Business registered to Secretary of State (SOS) for at least 60 days

What’s After Tier 1 Vendors

When you choose to build business credit this way, you need 3 to 5 accounts reporting before you qualify for vendors in the next tier. Use vendors in Tier 1 to buy the things you need for your business anyway. As a result, you will be well on your way to building a strong business credit portfolio.

The goal is at least 10 business credit accounts reporting to your business credit report. For some, it is possible to get those 10 accounts from any tier by offering a personal guarantee. However, even if this is possible for you, it’s not always the most strategic move. It’s not wise to have all of your business credit tied to your personal credit.

Some business accounts require a personal guarantee regardless. But the more credit you can get in the name of your business without a personal guarantee, the better. Tier 1 vendors are the gateway to building a strong business credit profile with minimum personal guarantee.

The post Tier 1 Business Credit – Dive Into the Truth appeared first on Credit Suite.

How to Build an All Star Team of Tier 1 Business Credit Vendors to Kick Off Business Credit

Do you ever feel like trying to get credit for your business is like playing a game, but you don’t know the rules?  Imagine trying to play football but having no clue how the game works. From kick off, you would be doomed to lose. The same is true with business credit. If you don’t know what rules credit providers are playing by, you may feel like it’s a losing game from the beginning.  The best way to kick off business credit is with Tier 1 business credit vendors.

Put Together a Winning Team with Tier 1 Business Credit Vendors

As with any great football program, you need great players and a great coach if you are going to win.  Credit Suite offers great coaching through the7 steps in the Business Credit Builder.  Then, once you work your way through the first couple of steps, you will have no problem recruiting a winning team of Tier 1 business credit vendors in step 3.

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

What Are the First Steps?

Of course, It does you no good to have a team if you don’t have a score board or even a field to play on. So, you have to complete the first two steps to start. Step 1 is to build a fundable foundation. This is how credit providers will see that your business is legitimate and separate from you as the owner.

Here is a quick summary some of the things included in a fundable foundation:

  • Physical address where you can receive mail
  • Toll free phone number listed in the 411 directories
  • EIN
  • Incorporating as an S-corp, LLC, or corporation
  • Dedicated business bank account
  • Proper licensing
  • Business website

After that, you have to establish your business credit reports, which includes getting a D-U-N-S number from Dun & Bradstreet and making sure you are listed with the other business credit reporting agencies. Obviously, you cannot have a business credit score without a business credit report for vendors to report payments to. Establishing this “scoreboard”  is Step 2.

Step 3: Tier 1 Business Credit Vendors

This is the step where you actually start building your business credit. To win the game, you have to choose the right vendors for your team. Without established business credit, it is going to be hard to recruit. You have to go after the right ones for this stage. These are vendors in tier 1, also known as starter vendors.

These vendors lay the groundwork for building a business credit score. They can provide initial accounts that report so that you can get a  business credit score on the board. Just like a winning team is a powerful recruiting tool in football, an initial business credit score opens the possibility of approval for advanced vendor credit accounts.

What Makes a Vendor a Tier 1 Business Credit Vendor

These are usually companies that do not specialize in extending credit. Rather, they are retail businesses that may extend net terms on invoices to their customers as a courtesy. Usually they offer either 30, 60, 90 days or however many days the net terms state, to pay in full.

It’s different from a credit card because it is not revolving credit, and there is no card. They extend this type of credit to customers without depending as heavily on creditworthiness as other vendors do. That’s not to say they just give net terms to anyone. They will just take factors other than business credit into account when determining creditworthiness.

With many of them, if you complete step one and build a strong fundable foundation, you are likely to get approval.

Other Factors to Determine Creditworthiness

These vary from vendor to vendor, but some examples include:

  • Previous or current relationship with the customer
  • Time in business
  • Average balance in business bank account
  • And more

The Importance of Reporting

Vendors that extend net terms without relying solely on business credit reports are hard enough to find. However, to be a true tier 1 business credit vendor, they also have to report positive payment history to the business credit reporting agencies.

Many vendors will report negative payment experiences, but they will not report on-time payments. Unfortunately, this is the case with more than nine out of every ten vendors. As you can imagine, this is a huge problem when it comes to building business credit. You need credit to get credit, and starter vendors that report are the only way to break the cycle.  Yet, they are almost impossible to find on your own.

Why Can’t I Find Tier 1 Business Credit Vendors On My Own?

It’s not totally impossible. But, vendors do not make it easy to figure out how heavily they rely on business credit reports or whether they report payments. That only leaves you with a couple of options if you want to do it on your own.

You can apply for accounts with the vendors you already use. Since they already work with you, they may be willing to offer credit based on your relationship rather than credit history. You can also just apply for vendor accounts and hope for the best. If you monitor your business credit reports, you will be able to see if they are reporting.

Obviously this trial-and-error method has some glaring holes in it. First, there is no telling how long it will take to get approval for just one account. Then, you will not know if they are reporting until you see or don’t see it on your business credit report. You need at least 3 accounts reporting to establish a business credit score. This method takes a lot of time and causes a lot of frustration.  Not only that, you may never get where you need to be before the lack of ability to get funding shuts you down for good.

How to Find Tier 1 Business Credit Vendors

Working with someone who has an inside track on which creditors will extend net credit without a credit check, and report on-time payments, saves time and frustration. You can know you are eligible for approval before you apply. Then, as you get approval and start using the credit, you will know your business credit score is growing because you know the vendor reports.

Many times a business credit specialist can help you find less costly ways to monitor your business credit reports as well.

Examples of Tier 1 Business Credit Vendors

While there are several such vendors in Tier 1 of the Business Credit Builder, seeing examples can help you get an idea of what’s available. Here are a few to get you started, but remember it takes more than one account reporting to move on to tier 2 vendors.

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

Grainger Industrial Supply

This vendor sells hardware, power tools, pumps and more. They report to Dun and Bradstreet, and if a business doesn’t have established credit they will want to see other information like accounts payable, income statement, balance sheets, etc.

They offer net 30, 45, 60, or 90 terms, and qualification requirements include:

  • Being an entity in good standing with the applicable Secretary of State
  • Being registered with the Secretary of State (SOS) for at least 60 days
  • An EIN
  • A business address that is consistent everywhere it is listed
  • A D-U-N-S number
  • All business licenses (if applicable)
  • A business bank account

Uline

Uline sells shipping, packing and industrial supplies. They report to both Dun & Bradstreet and Experian. Before you can get approval for net terms, you MUST create an account with them. They offer net 30 terms.

Qualification requirements include:

  • Being an entity in good standing with Secretary of State
  • An EIN
  • A business address (matching everywhere)
  • D-U-N-S number
  • Business bank account
  • Business phone number listed in 411
  • A D&B PAYDEX score of 80 or better (although if you meet the other requirements you may get approval anyway)

The credit department may require a few prepaid orders before extending net terms.

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

Home Depot Pro

As part of the Home Depot family, they offer facility maintenance supplies. This vendor will not accept virtual addresses. They report to Experian, and offer net 20 terms.

Qualification requirements include:

  • Being an entity in good standing with Secretary of State
  • An EIN
  • Business address (matching everywhere)
  • D-U-N-S number
  • Business license (if applicable)
  • Business bank account
  • Trade/bank references
  • There is no minimum time in business requirement

Using Tier 1 Business Credit to Prepare for the Future

Consider the following example:

A business ships items to customers on a daily basis. In fact, shipping expenses make up a significant portion of business costs. A vendor account with Uline can allow you to stock up on shipping and packing supplies now, before prices get any higher due to continuing inflation. Then, you will be able to avoid raising shipping costs for your customers for a longer period of time.

In addition, it’s no secret that supply chain problems are plaguing most everyone right now. It’s going to get worse before it gets better. Vendor credit will allow you to place orders for things now, in anticipation of the fact that it may take a bit for them to come in.

The Quickest Way to a Touchdown

Once you have a number of tier 1 business credit vendors reporting, you will be able to move on to more advanced vendors. This will allow your business to always have access to the funds it needs to grow. That’s definitely worthy of major points.

The post How to Build an All Star Team of Tier 1 Business Credit Vendors to Kick Off Business Credit appeared first on Credit Suite.