Tag: Vendor

New York school, food vendor apologize for serving chicken and waffles on first day of Black History Month

A New York middle school is apologizing after serving students with a meal on the first day of Black History Month that was deemed to be culturally insensitive.

Administrators at Nyack Middle School say that the hot lunch menu was changed by the vendor without their knowledge on February 1st, the first day of Black History Month, to include chicken and waffles with a watermelon dessert which the school’s principal called an “unfortunate situation”, The Journal News reported.

“We are extremely disappointed by this regrettable situation and apologize to the entire Nyack community for the cultural insensitivity displayed by our food service provider,” Nyack Middle School Principal David Johnson said in a statement. 

“I am disappointed that Aramark would serve items that differed from the published monthly menu. Especially items that reinforce negative stereotypes concerning the African-American Community.”

REP. WESLEY HUNT BLASTS DEMOCRATS FOR CRYING WOLF ABOUT RACISM DURING BORDER HEARING: ‘NOTHING TO DO WITH’ IT

Multiple families expressed outrage over the menu selection including parent Lindsay Siegel who told the outlet that it was “really disappointing” the change wasn’t caught.

Aramark, the school district’s food vendor, issued a statement on the matter on Thursday.

PROFESSOR LAMBASTS WHITE PEOPLE AS ‘DAMAGING’ WHO NEED TO DISMANTLE THEIR ‘WHITENESS’

“While our menu was not intended as a cultural meal, we acknowledge that the timing was inappropriate, and our team should have been more thoughtful in its service,” the Aramark statement said. “This was a mistake and does not represent the values of our company, and we are committed to doing better in the future.”

Aramark also said that it will be partnering with the school to provide sensitivity training for employees who work at the school to make sure their actions align with the district’s “vision and commitment to equity-driven work.”

“We believe this will provide a good learning opportunity to deepen understanding on the impact of systemic biases and negative stereotypes concerning the African-American Community,” the statement said.

Aramark has found itself in similar situations in years past including an incident in 2011 where UC California-Irvine, an Aramark client, was criticized for serving a “MLH Holiday Special” that featured chicken and waffles.

Fox News Digital reached out to Nyack Middle School and Aramark but did not immediately receive a response.

How Business Vendor Credit Accounts Can Improve a Business Credit Portfolio

Business vendor credit accounts are not usually talked about as part of a business credit portfolio. The emphasis is generally put on credit cards, lines of credit, and loans. However, they are vitally important to the cause. 

A Strong Business Credit Portfolio Can Help Move Your Business Forward

A business credit portfolio is made up of all of the credit you have available to your business.

That includes: 

  • Loans
  • Lines of Credit
  • Credit Cards
  • And even business vendor credit accounts

Having a strong business credit portfolio is important for running and growing your business. It’s how you ensure you have the funding you need, available when you need it.  It helps you bridge both planned and unexpected cash gaps. 

Even better, it will allow you to seize opportunities to grow and scale.  Better yet, you can do without creating a cash flow problem. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit, even in a recession.

How Do You Build a Strong Business Credit Portfolio?

Some business owners just use their personal credit to get started.  That’s not necessarily the best way. Most do not even realize there is another way. It actually starts with business vendor credit accounts.  These are accounts with vendors that allow you to pay invoices on net terms, rather than right away. 

How can net 30 vendors and and accounts with longer net terms really help? There are actually a number of ways. They not only contribute to a strong portfolio, but they can be a gateway to building an even stronger portfolio. 

How Vendor Credit Accounts Contribute to a Credit Portfolio

Using net 30 vendor accounts allows you to manage cash flow.   The best part is you can do so without paying interest. This is because net accounts are paid off in total at the end of the net terms. Usually that is 30, 60, 90, or 120 days. 

Cash Flow Management and the Credit Portfolio

Managing cash flow is really what the business credit portfolio is all about. A strong portfolio allows you to get what you need when you need it.  There is no need to use up cash reserves or wait until you have enough cash on hand. 

It’s smart to use business vendor credit whenever possible. By doing so, you save the revolving credit for larger purchases or those purchases you do not have vendor credit available for. 

Business Vendor Credit Helps Build Your Credit Portfolio

Here’s another way business vendor credit can improve your business credit portfolio. If you get the right accounts and use them properly, they can help you fill your credit profile with more business credit. As a result, you can rely less heavily on your personal credit. 

Here’s how that works. As a new business, you will not yet have a business credit profile. There is no history of your business paying obligations, and there is no business credit score. 

Since it’s virtually impossible to get credit without credit, there is a problem. Before you can build a business credit profile, you have to have initial accounts reporting. 

Using Business Vendor Credit Accounts To Get Accounts Reporting

There are not many business accounts you can get without already having a business credit score.  However, there are a few net 30vendors that will offer net terms on invoices without doing a credit check. We call these starter vendors.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit, even in a recession.

That doesn’t mean they extend credit to any and all businesses. There are still factors they consider to determine creditworthiness. These vary from vendor to vendor, but can include things like: 

  • Time in business
  • Business bank account
  • And more

Using Starter Vendors to Build a Business Credit Profile

Extending credit without a credit check is not the only thing that makes a vendor a starter vendor. The other thing that starter vendors do that sets them apart is report on-time payments to the business credit reporting agencies. This is how you start to build a business credit score.

How to Find Starter Vendors

This part is tricky for a number of reasons. Most vendors that will extend net terms will tell you whether or not they do a credit check. What they will not usually tell you is whether or not they report your payments. Many will report late or missed payments, but few report positive payment history. 

You need accounts that will report positive payment history to build a business credit profile. 

There are a couple of ways to find starter vendors. The first way is to apply for accounts with the vendors you already use or want to build a relationship with. If you get approval, use the account. Then, monitor your business credit report to see if they are reporting.

There are a few problems with this method.  First, it is not guaranteed. There are not a lot of starter vendors out there. That means the chances that you just happen to find enough by trial-and-error are low. It takes more than one or two accounts reporting. You need a few.

This trial-and-error process can be very slow. The only way to know if it is working or not is to monitor your business credit. Unlike consumer credit monitoring, business credit monitoring is not free. Therefore, you are going to be paying to build business credit regardless. That is, unless you do not track your progress at all. 

There is a Better Way

The slow progress and uncertainty of trial-and-error wastes time and can cause a lot of frustration. A better way is to start with vendors you already know are starter vendors. The key is to work with someone who has an inside track on which creditors will extend net credit without a credit check and report on-time payments. 

By doing this, you can know that as you get approval and start using the credit, your business credit score is growing.  Working with a business credit specialist is much faster and saves a ton of frustration. It frees you up to run your business. You don’t have to try to figure out which vendors can help build your profile. 

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

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit, even in a recession.

Using Vendor Business Credit Wisely

There is a chance some of the vendors you need to work with to get accounts initially reporting will not be vendors you would have otherwise chosen. They may not sell things you think you need. The thing is, most of them sell things that every business can use. 

There is no need to buy a bunch of useless stuff to build business credit. You can buy packing supplies, office supplies, even janitorial supplies. Whatever you do, just be sure you pay on time, or better yet, early.

Business Vendor Credit Accounts Really Can Improve a Business Credit Portfolio

In fact, without them, it’s almost impossible to build a business credit portfolio at all. Your only option is to use a personal guarantee and collateral on virtually all accounts.  While neither of these things are bad, the less you have to use them the better. 

The post How Business Vendor Credit Accounts Can Improve a Business Credit Portfolio appeared first on Credit Suite.

How Business Vendor Credit Accounts Can Improve a Business Credit Portfolio

Business vendor credit accounts are not usually talked about as part of a business credit portfolio. The emphasis is generally put on credit cards, lines of credit, and loans. However, they are vitally important to the cause.  A Strong Business Credit Portfolio Can Help Move Your Business Forward A business credit portfolio is made up … Continue reading How Business Vendor Credit Accounts Can Improve a Business Credit Portfolio

A Starter Guide to Amazon Vendor Central

Becoming a third-party seller isn’t the only way to make money on Amazon. What if I told you there’s a way to get rid of the bulk of your seller admin and focus solely on helping a single customer who will sell your products for you? Well, that’s what you can expect from Amazon’s Vendor …

The post A Starter Guide to Amazon Vendor Central first appeared on Online Web Store Site.

Check Out 5 Great Recession Vendor Accounts To Build Your Business Credit

The novel coronavirus has changed our economy. And it continues to do so. You may be thinking you cannot qualify for any great recession vendor accounts to build your business credit. But you can! Let us show you how to get the credit and cash your business needs – now, more than ever.

Check Out 5 Great Recession Vendor Accounts to Build Your Business Credit

Are you looking for 5 great recession vendor accounts that build your business credit? We’ve got them right here. Get the easiest business credit card!

When you are first starting to build business credit, your first step should be vendor or trade credit. You want to get into good credit habits. So this is everything from not borrowing too much, to paying your debts back on time. And it includes staying on good terms with your sources of credit.

You will need to start a business credit profile and score with what are called starter vendors. Starter vendors are ones who will give your small business initial credit. So they will do so even if your company has no credit, no score, or no trade lines.

Note that most stores like Staples will not give you initial starter credit, so don’t even try applying with them.

Here are 5 great recession business credit vendors that build your business credit. You can get a starter business credit card. This is the vendor credit tier, and these are our top 5 business credit cards for new businesses.

Learn more here and weather any recession. Get started toward getting up to 7 vendors that build your business credit.

Great Recession Vendor Accounts that Build Your Business Credit: 1. Uline

You can find Uline’s website here. They sell shipping, packing and industrial supplies, and they report to Dun & Bradstreet and Experian. You must have a D-U-N-S number and an EIN before starting with them. They will ask for your business bank information. Your business address must be uniform everywhere. You need for an order to be $50 or more before they’ll report it. Your first few orders might need to be prepaid initially so your company can get approved for Net 30 terms.

Qualifying

You need the following to qualify:

  • 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

Apply with Them

Here’s how to apply with them:

  • Add an item to your shopping cart
  • Go to checkout
  • Select to Open an Account
  • Select to be invoiced

Great Recession Vendor Accounts that Build Your Business Credit: 2. Crown Office Supplies

Crown Office Supplies is an additional true starter vendor. They sell a variety of office supplies and take helping clients seriously. They state, “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 bureaus. For other purchases to report, the purchase must be at least $30.00. Terms are Net 30.

Qualifying

  • Here’s how to qualify:Your business entity must be in good standing with the applicable Secretary of State
  • You must have an EIN and a D-U-N-S number
  • Business address (it has to match everywhere)
  • Business license (if applicable)A business bank account
  • Corporation must be at least 60 days old
  • Membership fee is $99 per year upon approval

Apply with Them

Apply online.

Great Recession Vendor Accounts that Build Your Business Credit: 3. Grainger Industrial Supply

You can find Grainger Industrial Supply here. They sell hardware, power tools, pumps and more. They also do fleet maintenance. And they report to Dun & Bradstreet.

Qualifying

To qualify, you need the following:

  • A business license (if applicable)
  • An EIN number
  • A business address matching everywhere
  • A business bank account
  • A DUNS number from Dun & Bradstreet
  • Business entity in good standing with the applicable Secretary of State

If your business doesn’t have an established credit, they will require additional documents like accounts payable, income statement, balance sheets, and the like.

Apply with Them

Apply online or over the phone.

Great Recession Vendor Accounts that Build Your Business Credit: 4. Supply Works

Supply Works is a great recession vendor. Visit them at: www.supplyworks.com. They are a part of the Home Depot. They offer integrated facility management solutions. Virtual addresses are not accepted. They report to Experian. Terms are Net 30.

Qualifying

To qualify, you need to have:

  • An entity in good standing with Secretary of State
  • EIN number with IRS
  • Business address (it must match everywhere
  • D-U-N-S number
  • Business license (if applicable)
  • A business bank account

Apply with Them

Apply online or over the phone.

Great Recession Credit Suite

Find out why so many companies are using this to weather any recession and improve their business credit – and check out even more vendors (7!) to help you build business credit.

Great Recession Vendor Accounts that Build Your Business Credit: 5. Strategic Network SolutionsSmart Recession Credit Suite

Check out Strategic Network Solutions. Visit them at: https://stntsol.com. They offer technology training and tech support. A credit limit will start at $1000 for new businesses. It increases by an $500 increment if balances are paid in full and on time. They report to Experian and Credit Safe.

Qualifying

In order to qualify for business credit with Strategic Network solutions, you will need the following:

  • An EIN
  • To have your business entity squared away (corporation, partnership, LLC, etc.) and in good standing with the applicable Secretary of State
  • Business address (matching everywhere)
  • Business license (if applicable)
  • A D-U-N-S number
  • A business bank account

Apply with Them

Apply online.

Great Recession Vendor Accounts that Build Your Business Credit: Bonus: Marathon

Marathon Petroleum Company provides transportation fuels, asphalt, and specialty products throughout the United States. Visit them at: www.marathonbrand.com. Their comprehensive product line supports commercial, industrial, and retail operations. They report to: D&B, Experian, and Equifax. Terms are Net 22.

You can give a $500 deposit instead of using a personal guarantee if you have been in business for less than a year.

Qualifying

To qualify, you need:

  • An EIN
  • To have your business entity squared away and in good standing with the applicable Secretary of State
  • Business address (matching everywhere)
  • Business license (if applicable)
  • A D-U-N-S number
  • A business bank account

Apply with Them

Apply online.

Building Business Credit – Going Beyond 5 Great Recession Vendor Accounts That Build Your Business Credit

Getting vendor accounts for business credit means that you are on your way to getting good business credit. Get three or more vendor accounts. You want them all to be reporting with at least one bigger business credit bureau. And then you can start trying to get store credit.

Retail Credit

Once there are three or more vendor trade accounts reporting to at least one of the CRAs, then move onto revolving store credit. These are businesses such as Office Depot and Staples. These companies have even more of the goods you need.

You will always have to use your Social Security Number and date of birth for verification purposes. But use the small business’s EIN on these credit applications when it comes to credit check services small business.

Fleet Credit

Are there more accounts reporting? Then move to fleet credit. These are service providers such as BP and Conoco. Use this credit to buy, fix, and take care of vehicles.

Use your Social Security Number and date of birth for verification purposes. But make certain to apply using the company’s EIN for credit checks.

Cash Credit

Have you been sensibly managing the credit you’ve gotten up to this point? Then progress to cash credit. These are service providers like Visa and MasterCard.

Use your Social Security Number and date of birth for verification purposes. And apply using the company’s EIN for credit checks.

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

If it were all left up to you, how would you improve weathering any recession and working with 7 vendors to help you build business credit?

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and deal with any inaccuracies ASAP. Get in the habit of taking a look at credit reports; so dig into the details, and not just the scores.

So we can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the business credit reporting agencies.

Update The Details

Update the details if there are mistakes or the information is incomplete. So at D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm.

And at Experian, go to: http://www.experian.com/small-business/business-credit-information.jsp.

Finally, for Equifax, go to: http://www.equifax.com/business/small-business.

Challenging Mistakes

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

Get your PAYDEX report for DNB small business at: http://www.dnb.com/about-us/our-data.html.

You can get your company’s Experian report at: http://www.businesscreditfacts.com/pdp.aspx?pg=SearchForm.

And get your Equifax business credit report at: http://www.equifax.com/business/credit-information.

Disputes

Disputing credit report errors typically means you send a paper letter with copies of any evidence of payment with it. So these are documents like receipts and cancelled checks. But never mail the originals. Always send copies and keep the original copies.

Disputing credit report errors also means you precisely spell out any charges you dispute. Make your dispute letter as understandable as possible. Be specific about the concerns 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: http://www.equifax.com/small-business-faqs/#Dispute-FAQs.

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

And D&B’s PAYDEX Customer Service telephone number is here: https://www.dandb.com/glossary/paydex/, to help you with disputes. It’s the only way they’ll let you dispute a DNB.com credit report.

Takeaways for 5 Great Recession Vendor Accounts That Build Your Business Credit

Always use credit responsibly! Don’t borrow more than what you can pay off. So monitor balances and deadlines for payments. Paying off punctually and in full will do more to increase business credit scores than nearly anything else.

Establishing small business credit pays. Great business credit scores help a company get loans. Your lender knows the company can pay its financial obligations. Because they know the small business is authentic. The company’s EIN links to high scores and loan providers won’t feel the need to require a personal guarantee.

And soon you’ll be able to move onto the top ten business credit cards – and beyond! Because no matter how it feels right now, the COVID-19 situation and recession will not last forever.

COVID-19 5 vendors Credit Suite

Discover this new way to weather any recession and find 7 (!) vendors to help you build business credit.

The post Check Out 5 Great Recession Vendor Accounts To Build Your Business Credit appeared first on Credit Suite.

Don’t Let Bad Credit Sink Your Business: Recession Vendor Credit Can Pull You Out of the Quicksand

How Recession Vendor Credit Can Be a Lifeline Out of Mud and Muck

You’re trying to sleep but anxiety is creeping in.  You can’t shake the cold feeling in the pit of your stomach.  The recession hit and you are about to start sinking fast.  What can you do?  Is there any hope?  Your personal credit can only hold so much, and it won’t last for long the way things are going.  The business credit situation isn’t great either.  You need to find a vine so you can pull yourself out of this mess.  That is exactly what recession vendor credit can do, if you know how to use it.

Bad business credit is like quicksand.  It can pull you down and choke the life out of your business before you can think.  The more you struggle the deeper you sink.  How can you possibly pull your business out of this sticky situation?  Reach for the vine of recession business credit.  Not only can it help rebuild and repair damaged business credit, it can start you on the path to stronger business credit than you have ever had.  If you don’t have business credit, then recession vendor credit can help you establish it.

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! 

The vendor credit tier of business financing offers terms that count as credit, and reports payments to credit agencies.  This allows you to establish and build business credit that will get you out and keep you away from more business finance quicksand.

To fully understand the vendor credit tier however, you need to know what it is, and how it fits in to the other business financing tiers.

The Recession Vendor Credit Vine Hangs Low

If you are sinking in quicksand the first thing you have to do is stop struggling.  The more you struggle the faster you sink.  You do not reach for vines and branches that are too high.  The low hanging vine that is easy to get to is really the only option you have.  Recession vendor credit is easy to recognize because, unlike the other credit tiers, it is going to be easy to grab a hold of from right where you are.

Start Vendors

This is a low hanging vine that you need to grab to build your business credit. Even if you do not have business credit at all when you first start, it will still work. In fact, it may work better from the beginning.  However, this vine can pull you out of a bad credit mess as well.

Starter vendors are the businesses from which you purchase the things you use day to day in your own business. It may be inventory, raw materials, office supplies, or any number of things. They offer terms such as net 30, meaning you get 30 days from the date of purchase to pay for the items purchased.  Some vendors offer net 15, net 60, or even net 90.

In the end, they report your payments, or lack thereof, to credit agencies. The beauty is they do not require a credit check typically, meaning if you handle things properly, they offer an opportunity to build business credit from the ground up.

Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, you can start to reach for some of the higher vines, like store credit. These are service providers like Office Depot and Staples.

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

There are several options that report to various credit reporting agencies.  For example, Lowe’s reports to D&B, Equifax and Business Experian. They want to see a D-U-N-S and a PAYDEX score of 78 or more.  If you have handled your recession vendor credit properly, this will be no problem.

Fleet Credit

Are there more accounts reporting? Then you can reach for the next higher vine, fleet credit. These are companies like BP and Conoco. Use this credit to purchase fuel and vehicle maintenance. Just use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the company’s EIN.

Shell is an example of a company in this tier.  They report to D&B and Business Experian. They want to see a PAYDEX Score of 78 or more and a 411-business phone listing.

Shell might say they want a certain amount of time in business or revenue. However, if you already have adequate recession vendor credit, that won’t be necessary. You will still be able to get approval.

General Credit Cards

Have you been responsibly handling the credit you’ve gotten up to this point? Then keep reaching for higher vines and get yourself out of the muck for good.  General credit cards include businesses such as Visa and MasterCard. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN.

 

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! 

Additionally, they want you to have an established company.

How to Make Starter Credit Work for Your Business

Using recession vendor credit doesn’t help you at all if you are operating under your personal credit. You have to establish your business as its own entity before it can build its own credit. It’s much easier to stay out of the quicksand, but if you do fall in, knowing what to do is essential.  It also helps if you have been working out and have a solid core to help pull yourself up.  When it comes to business credit, these are the things you must do to build your core:

  • Incorporate your business (or at least begin operating under a DBA)
  • List separate business contact information in directories
  • Obtain an EIN and D-U-N-S number
  • Open a bank account in your business name and run all business expenses through that account.

These steps will help you establish your business as an entity with finances separate from your own. That means vendors will report credit information in your business name. Thus, your business credit will be born. This is the foundation of your strong core and what will help you begin the process of pulling yourself out of a sticky credit situation.

Now, who are these vendors that can save you?   We picked a few of the best to highlight, but the list isn’t exhaustive by any means.

Grainger Industrial Supply

Grainger sells power tools, pumps, hardware and other things. In addition, they can handle maintenance of your auto fleet. You need a business license and EIN number to quality, as well as a D-U-N-S number from Dun & Bradstreet.

Quill Office Supplies

Quill is the ultimate starter vendor . They sell office supplies as well as cleaning and packaging supplies. Products range from office furniture and printer ink to snacks and coffee.

Uline Shipping Supplies

Uline reports to Dun & Bradstreet and carries shipping boxes, trucks, dollies, janitorial supplies, and more. Initially, you may need to prepay. After that, they are likely to approve you for Net 30 terms.

Behalf.com

Behalf is way of getting paid through an app, but they also offer funding. The more you have your customers pay you through Behalf, the more likely they are to offer you favorable terms when it comes to funding.

Avoid the Quicksand All Together

Once you are out of muck and safe, don’t jump right back in. Stay on solid ground and on top of your business credit. How do you do this when quicksand can sneak up on you so quickly?  It’s not as hard as it sounds.

If you are working with recession vendor credit, be certain to make payments on time or early. Then, monitor your credit. When you see things moving in the right direction, keep moving up the vines and building strong business credit.

Don’t become a victim of credit agency mistakes. If you see a problem on your report, signal for help. Let them know about the mistake in writing, give them the correct information, and provide documentation. Don’t send originals though. Be sure to make copies and keep the originals for yourself.

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! 

You should note that it is isn’t as easy to monitor business credit as it is to monitor personal credit. You can get a free personal credit report annually, and you can monitor your score and changes in your report through several free websites.  It costs money to monitor your business credit score.  There is no way around it.  However, we can help you monitor business credit at Experian and D&B for 90% less than it would cost you with the credit reporting agencies.  Find out how at www.creditsuite.com/monitoring.

Grab the Recession Vendor Credit Vine: Don’t Let Bad Business Cause Your Business to Sink

If you know it’s there and are watching out for it, quicksand is totally avoidable. Unless, of course, you find yourself in a COVID-19 situation.  Then, you may very likely be pushed in before you even know what is happening. Bad business credit is also avoidable and fixable, even in a recession. It may take some time, but you can establish and build great business credit following the process, starting with recession vendor credit.

Start with starter vendors and work your way up to traditional financing.  If you trust the process, your business can thrive. Be careful not to move too fast. Start slow. If you move to quickly you could be sinking before you know it. When it comes to building business credit, slow and steady wins the race.

What does it mean to take it slow? Don’t bite off more than you can chew. Do not take on more credit than you can handle. Know your limits, and pay attention to the market. If you move to fast when trying to get out of quicksand you are just going to sink faster.  You have to stop struggling and move with slow, controlled movements. Any progress is progress toward where you want to be, meaning you are getting closer no matter how slowly you are moving.  Just keep moving in the right direction.

The same is true of building a business. You don’t have to move quickly, you just have to keep moving in the right direction.

 

 

 

 

 

 

The post Don’t Let Bad Credit Sink Your Business: Recession Vendor Credit Can Pull You Out of the Quicksand appeared first on Credit Suite.

Is It Possible to Get Vendor Credit for New Businesses? Yes!

Vendor credit accounts, also known as business tradelines, are vital to the business credit building process. However, getting vendor credit for new businesses can be tricky.  It doesn’t happen overnight, but if you follow the process, it can happen.

Yes!  It’s Possible to Get Vendor Credit for New Businesses

First, we have to define what a new business is in this context.  When we discuss vendor credit for new businesses, we mean businesses in operation for less than a year. You can get starter vendor credit if you have been in operation for less than a year, but most require you to be in business for at least 6 months. There are a few that do not have a time in business requirement however. 

Then, we have to define vendor credit.  Vendor credit is credit from vendors that you make purchases from for your business.  When it comes to vendor credit for new businesses, you need those that will offer credit without a credit check. This is because, as a new business, you have not yet had time to sufficiently build business credit. 

When it comes to new businesses, some vendors will extend net terms and report your payments to the business credit reporting agencies (CRAs).  For new business, they generally do not offer revolving credit, but that’s okay. That can come later. The whole point of vendor credit for new businesses is to help you build your business credit score so you can qualify for more types of funding. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

What is a Business Credit Score and Why Do You Need One? 

If the point of vendor credit for new businesses is to build your business credit score, it can be helpful to understand exactly why you need one.  A business credit score is a credit score similar to your personal FICO credit score, but in the name of your business. It is not associated with you as the owner, or with your personal credit score. 

The problem is, it doesn’t matter how much vendor credit you get, it will not count toward your business credit score if your business is not set up to be a separate entity from you as the owner.  If it isn’t, any credit you get will just be applied to your personal credit report. 

Set Your Business Up As A Separate Entity from Yourself

Here are some practical steps to take to create separation between your business and yourself. 

Do Not Use the Same Contact Information

Make sure your business has its own phone number, fax number, and address.   That’s not to say you have to get a separate phone line, or even a separate location.  You can have a business number forwarded to your current phone. You can even still run your business from your home or on your computer.  It’s not even necessary to have a fax machine.

EIN

Next, get an EIN.  This is an identifying number for your business that works similar to how your SSN works for you personally.  Some business owners use their SSN for their business transactions such as opening credit accounts. This is what a lot of sole proprietorships and partnerships do.  However, it really doesn’t look professional to lenders, and it can cause your personal and business credit to get all mixed up.  To be fundable, you need to apply for and use an EIN.  You can get one for free from the IRS.

Incorporate As Soon As Possible

Incorporating is an absolutely necessary step. Not only does it play a huge role is separating a business from the owner, but it also lends credibility to your business as one that is legitimate. In addition, it offers some protection from liability. 

Which option you choose does not matter as much for being fundable as it does for you budget and needs for liability protection.  The best thing to do is talk to your attorney or a tax professional.  If you do not do this from the beginning, there will be some issues to work through. When you incorporate, you become a new entity.  This means you lose any time in business you already have. You basically have to start over.  You’ll also lose any positive payment history. 

This is why you have to incorporate as soon as possible.  Not only is it necessary for fundability and for building business credit, but so is time in business.  The longer you have been in business the more fundable you appear to be.  That starts on the date of incorporation, regardless of when you actually started doing business. 

Separate Business Bank Account

A separate, dedicated business bank account is also a must.  There are a few reasons for this.  First, it will help you keep business finances separate.  This is good for a lot of reasons, but the big one is tax purposes. 

However, there are also several types of funding you cannot get without a business bank account.  Many lenders and credit cards want to see one with a minimum average balance.  In addition, you cannot get a merchant account without a business account at a bank. That means, you cannot take credit cards payments.  Studies show consumers spend more when they can pay by credit card.

Proper Licenses

If anyone were to check to see if your business has all of the licenses it needs to operate and finds that you do not, it will cause a massive hit to your credibility with that person.  For a business to be legitimate, it has to have all of the necessary licenses it needs to run.  If it doesn’t, warning flags are going to start waving. Research what licenses you need to ensure you have all of those necessary to legitimately run your business at the federal, state, and local levels. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

Business Website

I am sure you are wondering how a business website can affect whether your business is separate from you as the owner.  Here’s the thing.  These days, a business doesn’t even really exist if there is no business website. Of course, that isn’t technically true, but practically is could be.  The website is the first impression you make on many, and if it appears to be unprofessional it will not bode well for you with consumers or potential lenders. 

Spend the time and money necessary to ensure your website is professionally designed and works well.  Pay for hosting too. Don’t use a free hosting service.  Also, your business needs a business email address that is different from your personal one. That goes along with separate contact information.  Make sure it has the same URL as your website.  A free service such as Yahoo or Gmail will not work the same way. 

Why is Vendor Credit for New Businesses So Important?

After you have all these pieces in place, you can start applying to get vendor credit from starter vendors.  These are those vendors we discussed earlier that will offer net terms and report payments. This is important because, if you have your business credit set up properly, those payments will start building positive credit history on your business credit report, and your business credit score will start to grow.  With a strong business credit score, all kinds of funding options will be open to your business. 

Where to Start to Get Vendor Credit for New Businesses

That’s the big question, right?  Sure, you know you need vendor credit, but which vendors will actually extend these terms without a credit check?  There are more than you may think, but here are a few to get you started. 

Behalf.com 

Behalf is way of getting paid through an app, but they also offer funding. The more you have your customers pay you through Behalf, the more likely Behalf is to offer you favorable terms when it comes to funding.  

Funding can be through purchase financing or a virtual Mastercard option. Terms run from Net 30 to 180 days, and they report to Dun & Bradstreet, Experian, and Equifax. This fact alone, that they report to all the major credit reporting agencies, makes them an extremely valuable tool in building business credit. 

Wells Fargo Business Secured Credit Card

This card is only available to Wells Fargo Online customers.  Credit lines are available from $500 to $25,000, and there is a $25 annual fee.  The grace period to pay is 21 days, and they offer purchase protection. You can apply for a Wells Fargo Business Secured Credit Card online, in a store, or by phone. They report to Business Experian. 

Uline Shipping Supplies

Uline sells shipping, packing and industrial supplies. This means you can use them to purchase things you would use in the everyday course of business. You will need two trade references and a bank reference to get approval for net terms.  In addition, they will usually only report payments on orders of over $50. They report to Dun and Bradstreet, so you will definitely need a D-U-N-S number before opening an account with them. 

Also, your first few orders might need to be prepaid.  It’s easy to apply. Just add an item to your cart, go to checkout, and choose the open an account option.  Then, select the option to receive an invoice.  

Quill Office Supplies

Quill is similar to Uline in that they sell packaging supplies.  However, they also sell office and cleaning supplies. You have to have an established PAYDEX or place and initial order before you can apply for net terms.  They report to D&B as well. If you place an order each month for 3 months you can usually get approval. Their application process is similar to Uline’s. 

Grainger Industrial Supply

Grainger will approve almost anyone that has a business license for credit of less than $1,000.  If you need over $1,000, they will ask to see trade and bank references. You can fax your application or apply over the phone. 

What Happens After You Get Vendor Credit for New Businesses?vendor credit for new businesses Credit Suite

These are great to get started with, because it is super easy to get accounts reporting with them.  That will get your business credit score started and allow you to get even more accounts reporting. Once you have several of these accounts, maybe 8 or 10, you can apply for different types of accounts.  

The next credit tier after this vendor credit tier is the retail credit tier.  This is commonly referred to as store credit.  Retailers like Office Depot and Lowe’s offer these cards, but you can only use them at those particular stores or on their specific websites.  However, after you get 8 or 10 of those reporting, you can move on to the next credit tier. 

That would be the fleet credit tier.  These are credit cards that companies like Shell and Fuelman offer to use exclusively for fuel costs and auto repair and maintenance.  This is the last step in the business credit building process before the cash credit tier, which is the last tier.  

This tier consists of those standard credit cards that are not regulated to a specific store or specific types of purchases.  Generally, they have better interest rates and terms, and often they offer nice rewards. 

Vendor Credit for New Businesses: A Word About Business Credit Monitoring

Pretty much the only way to start building business credit is with vendor credit from starter vendors.  However, you have to be actively involved in the process. You must monitor your business credit reports on a regular basis for more than one reason.  

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

First, you have to see which accounts are reporting.  This is the only way to know when you have enough accounts reporting to qualify for approval for cards in the next credit tier.  In addition, you need to keep an eye out mistakes and information that needs updating. Take action on this quickly, in writing, to keep them from affecting your fundability. 

Vendor Credit for New Businesses Is Necessary for Building Business Credit

Unlike personal credit, you have to actively work to build business credit.  After setting up your business to be a fundable entity separate from you as the owner, the next step is to find vendors that will extend credit and report payments to the business CRAs.  Once you do that, if you handle your credit responsibly, the snow ball will only keep building.  

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