Build Business Credit Basics

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13 Year Old Shelf Corporation For $2695. Request A List Of Shelf Corporations Here.

Build business credit with a delaware corporation or delaware LLC

Business Credit

Business credit is always linked to your EIN (Employment Identification Number) and not to your SSN (Social Security Number). There are many benefits.

Credit Profile

The credit profile is always separate from the owner’s personal credit profile, and the loan limit is much higher than that of consumer loan limit.

There are 3 types of business vendor credit:

Initial Credit

An initial credit for business which helps to build up the business credit profile having net 30 terms

Store Credit

Store Credit – which is available at almost all retail stores like Apple, Walmart, Amazon, etc

Cash Credit

Cash Credit – such as Visa, MasterCard, Amex which can be used anywhere.

Business Setup

A new business setup starts with no credit profile, and when credit is approved, a report is sent to the business credit reporting agencies. When a business starts using the credit and pay bills in a timely manner, the business gets approved for more credit.

Business Credit

While applying for first business credit one must meet every criteria of the credit issuer, and the application form is the only source for getting the credit approval. Thus, one’s application must be strong enough to convince the credit issuer for business credit for the first time.

The quickest way to fail a business credit approval is a lack of compliance.

  • EIN?
  • Business filed in your state as a foreign corporation or foreign LLC?
  • Business licenses filed?
  • Business name on application matches state filings and business licensing?
  • Website?
  • Phone number?

800 Number

The business must have an 800 number, fax number, website, company email address which every credit issuer will look for and the credit approval process will be much easier.

Business Licensing

To set up a business, business licensing is important and also to place the business under particular criteria of business and to contact with the county, state and city government offices for proper licensing process.

Legal Documentation

Your business name must be verified at every legal documentation including power bill, phone bills, landlord bills (if applicable) and it should match everywhere, and also that the business address is proper so that every bill gets delivered to the address.

Business Credit Report

Every business has its business credit report provided by various credit agencies such as Dun & Bradstreet, Experian commercial and others, it gives a detailed report about the business set up including positive and negative points.

DUNS is Free

The DUNS is free. There’s no need to pay for expediting the number.

Business Report

Read the business report thoroughly and the main thing to follow in the report is the Paydex report entitled to payment history of the company.

Annual fee

Approach new creditors for getting business credit for the company and add them to the company credit report list which grows the credit report in positive direction.

Vendor Account

Vendor account is the fast way to build business credit report for a new company.

Vendor Credit

Vendor credit means a net 15, net 30, net 60 or net 90 days to pay that credit for the products and services purchased. You must pay within the specified number of days.

411 Information

Vendors focus on verifying 411 information databases and the EIN of the company. After getting the loan amount and spending it for the purpose, the next step is to return the money on time and this report gets updated in various business reporting agencies. The business builds a credit score as the bills are paid on time on those multiple trade lines. Your goal is to build 5 accounts.

Starters Vendors

Starters vendors are the best options for getting initial credit for a startup company and they provide it without any credit report or trade line or even no credit. Staples won’t issue credit without these options.

Starter Vendors

Starter vendors quill office supplies

Some of the starter vendors are Quill Office Supplies, Gempler’s, Uline Shipping Supplies, etc. These starter companies provide business credit without any credit score, existing capital money, or any tradelines. They need a proper company name, address, phone number, EIN, and 411 listing for approval of credits.

  • Never ever put SSN numbers in application while applying for Business credit.
  • Always pay bills early or on time.
  • Don’t start with store credit which results into direct denial before you have five reported accounts.
  • Don’t apply for cash credit without 10 reported accounts.