Four Great Starter Vendors for Business Credit

Vendor Accounts

Vendor accounts are the foundation of your ideal business credit profile. Starting with vendor credit is a tried-and-true method for establishing business credit. Vendors provide immediate access to high-quality products that you can utilize for your company, as well as excellent customer service experts to assist you along the process. Vendor accounts will change the way your company operates.

Understanding Vendor Accounts

Vendor accounts are credit lines that allow you to buy products directly from the firm that sells them. You will have immediate access to the funds required to run your business and repay your line of credit. Vendor accounts can be used in a variety of ways. If you want to create business credit, you can report to business credit bureaus without providing a personal guarantee. If you want to boost your purchasing power, avoid reporting to corporate credit bureaus and using a personal guarantee. Use a personal guarantee to report to business credit bureaus if you want to receive better terms and limits while still growing your credit. Finally, if you want better conditions and limits for specialized usage with high returns, consider using a personal guarantee but not reporting to bureaus.

The Power of Business Credit

Your business credit reports are separate from your personal credit history. Unless there is a personal guaranteed requirement that you fail to meet, applying for company credit will not affect your personal credit. Personal guarantees are not required to be accepted for company credit cards. You’ll gain access to higher limits, better rates, and more business value.

Building a Business Credit Profile

Business credit does not grow overnight if you simply own a business and have an EIN; it must be purposefully built. Building corporate credit is more difficult than building personal credit. Building business credit begins with starter vendors. No matter how long you've been in business, you can receive approval for financing quickly. Use your credit after receiving permission from a starter vendor by paying at least $50. The merchant then reports that credit to the credit reporting agencies. Before acquiring large limits or credit cards without a personal guarantee, you must first build trust with your vendors. You will quickly gain this trust if you utilize your vendor credit accounts appropriately and pay them back on time.

Building a Business Credit Profile

Business credit does not grow overnight if you simply own a business and have an EIN; it must be purposefully built. Building corporate credit is more difficult than building personal credit. Building business credit begins with starter vendors. No matter how long you've been in business, you can receive approval for financing quickly. Use your credit after receiving permission from a starter vendor by paying at least $50. The merchant then reports that credit to the credit reporting agencies. Before acquiring large limits or credit cards without a personal guarantee, you must first build trust with your vendors. You will quickly gain this trust if you utilize your vendor credit accounts appropriately and pay them back on time.

Things You Need to Know About Business Credit

Not every merchant will approve you just because you have an excellent credit history and score. Some vendors have a time in business requirement. To acquire financing that does not require a personal guarantee, you may need to be in business for one to three years. Some suppliers may demand you to satisfy revenue standards, however many beginner vendors will approve you without these limitations. Before you can receive a Visa or MasterCard, you must have acceptable credit. Building business credit takes time and planning. The most difficult component is obtaining initial credit. Over 93 percent of trade vendors who give credit do not report to business credit agencies, therefore you must find funding sources who will.

Things You Need to Know About Business Credit

Not every merchant will approve you just because you have an excellent credit history and score. Some vendors have a time in business requirement. To acquire financing that does not require a personal guarantee, you may need to be in business for one to three years. Some suppliers may demand you to satisfy revenue standards, however many beginner vendors will approve you without these limitations. Before you can receive a Visa or MasterCard, you must have acceptable credit. Building business credit takes time and planning. The most difficult component is obtaining initial credit. Over 93 percent of trade vendors who give credit do not report to business credit agencies, therefore you must find funding sources who will.

Starter Vendor Accounts

Starter vendor credit accounts are credit lines that you can use to buy products directly from the firm that offers them. Vendors report credit even if your business does not have an established credit history. Rather than revolving terms, these vendors often offer net terms.

Starter Vendor Account Reporting Process

To get your business credit profile off to a good start, you must be approved for vendor accounts that report to business CRAs. Once accepted, you can utilize the credit, repay it, and the credit is reported to Dun & Bradstreet, Experian, or Equifax. You now have tradelines, an established credit profile, and an established credit score after reporting. You can then apply for extra credit under your EIN using your freshly formed business credit profile and score. Because vendor credit is not provided by a bank, you can leave your SSN off the application. You should only provide your SSN for verification purposes and make certain that you are not agreeing to a personal guarantee or a personal credit check. The creditor then pulls your EIN credit, sees a strong profile and score, and can authorize you for additional credit. Keep in mind that credit from a bank will demand your SSN as part of a federal anti-money laundering requirement.

Starter Vendor Account Benefits

Vendor credit is a critical stage in establishing business credit. Without a company credit history, the only sort of credit you can qualify for is vendor credit. The rest of your credit profile must be built. Establishing credit has been shown to aid in obtaining lender approvals. To get to Tier 2, you must have three or more vendor accounts. Those accounts will report in 30 to 90 days. Do not apply for Tier 2 credit until you have three or more accounts.

Grainger

Grainger is a company that sells hardware, power tools, pumps, and fleet maintenance. They provide credit information to Dun & Bradstreet. If a company does not have established credit, they may want to see additional documents such as accounts payable, income statements, and balance sheets in addition to their standard prerequisites. To be eligible, you must have an entity in good standing with the Secretary of State, an EIN with the IRS, a business address, a DUNS number, a business license, a business bank account, and a business that has been registered with the Secretary of State (SOS) for at least 60 days. You can apply online or by phone.

Uline

Uline is a company that sells shipping, packing, and industrial goods. They are accountable to Dun & Bradstreet and Experian. Before you can begin building business credit with them, you must first open an account with them. Net 30 periods are available. To qualify, you must have an entity in good standing with the Secretary of State, an EIN with the IRS, a business address, a DUNS number, a business license, a business bank account, a business phone number, a 411 directory, and a D&B Paydex score of at least 80.

Marathon

Marathon Petroleum Company sells transportation fuels, asphalt, and specialty products in the United States. Their product line is designed to support commercial, industrial, and retail ventures. This card provides information to Dun & Bradstreet and Experian. Before applying for several accounts with WEX Fleet cards, provide enough time between applications so that they do not suspect your account of fraud. You must have an entity in good standing with the Secretary of State, an EIN with the IRS, a business address, a DUNS number, a business license, a business bank account, a business phone number, and a 411 listing to qualify. Your Social Security Number is required for informative purposes only.

Supply Works

Supply Works is a division of Home Depot that specializes in integrated facility maintenance products. They are Experian-reporting and provide Net 30 terms. You must have an entity in good standing with the Secretary of State, an EIN with the IRS, a business address, a DUNS number, a business license, a business bank account, and trade/bank references to qualify.

WEX Cards

WEX provides universal fleet cards, heavy truck cards, and commercial fleet cards that are universally accepted. Their cards provide features that benefit small businesses, including a rewards program. Before applying for several accounts with WEX Fleet Cards, make sure to provide adequate time between applications so that your account is not flagged as fraudulent. A $500 deposit is required for a personal guarantee if you are not approved based on your business credit history or have been in business for at least a year. Net 15 (Wex Fleet Card), Net 22 (Wex Fleet Card), and revolving credit (Wex FlexCard) are the terms available. To be eligible, you must have an entity in good standing with the Secretary of State, an EIN with the IRS, a business address, DUNS number, a business license, a business bank account, a business phone number, and a 411 listing.