Published By Janet Gershen-Siegel at September 22, 2017
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 – everything from not borrowing too much, to paying your debts back on time, to 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 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 five vendor accounts which you can use to build up your business credit.
You can find Uline’s website here. This company sells shipping, packing, and industrial supplies. These include janitorial supplies, shipping boxes, and material handling products like hand trucks and dollies. Most importantly, they report to Dun and Bradstreet. Therefore, your small business must have a DUNS number before you start trying to get vendor credit with them. Uline will ask for two references and a bank reference. Your first few orders might need to be pre-paid to initially so that your company can get approved for Net 30 terms.
You can check out Quill online here. They sell office, packaging, and cleaning supplies. Their products also include toner, office furniture, and even coffee and snacks. You can even get your company’s coffee maker through them.
Quill reports to Dun and Bradstreet. You must place your initial order first unless your D & B score has already been established. In general, they will put you on a 90 day prepayment schedule. Plus if you order items each month for three months, they will typically approve you for a Net 30 Account.
You can find Gempler’shere online. Gempler’s sells work supplies and products, which include outdoor work wear and safety supplies, pest management products, tires, and footwear. Gempler’s will report to Dun and Bradstreet. You will need to place your initial order over $50 and the select the “Invoice me” option. Then they will pull your credit. In the event that your small business is not approved, make sure to pre-pay for your order. Then keep on purchasing and choosing the “invoice me” option until your small business is approved for a Net 30 account.
Check out Laughlin and Associates online here. Laughlin deals with corporate setup and compliance, so you can potentially work with them in order to get your small business set up as a corporation. They report to Experian. You will only need a 411 listing and an EIN. They will reports within 30 to 60 days and you can get Net 30 Terms for your small business.
You can find them online here. They sell the “Everything you need to know about Marketing and Business” 10 audio CD set. They report to Experian. This is a true starter account. Upon your check out choose the “4 equal payments of $59.99” option. Your first charge will take place in 30 days. You will need a bank account, an (Employer Identification Number) EIN, and a deliverable address. Wait 30 – 60 days for this vendor’s reporting to show up on your business credit reports. And if you would like their CD, you can order it here.
Getting vendor accounts for business credit means that you are on your way to getting good business credit. Once you have five vendor accounts and they are all reporting with the bigger business credit bureaus, then you can start trying to get store credit.