Published By Faith Stewart at November 22nd, 2018
This is the season of being intentionally thankful. Thanksgiving celebrations can be overwhelming for a variety of reasons. Of course, the main reason for most of us is there is so much to be thankful for. It could be the food, the company, or any number of things that inspire you to be thankful. If you are working on building business credit, you should take a minute to be thankful for these things. And that includes establishing business credit fast.
Some things in life can be a two-edged sword. If you love pumpkin pie, you are thankful for pumpkin pie. If it isn’t your favorite, you may not be as thankful. The same is true of building business credit. If you use the tools available, you will be very thankful that they exist. If you mishandle things, thankfulness may be the last emotion you feel.
It can help to actually know tools are available, and how to best utilize them in building business credit.
The vendor credit tier is like the turkey. The turkey is the crown jewel of the traditional Thanksgiving dinner. The vendor credit tier is the crowning glory of business credit building tools. This is the easiest and most logical place to start for establishing business credit fast..
The idea is to do business with those vendors that will extend invoices with Net 30 terms. Certain requirements are necessary to receive these terms, but more often than not there isn’t a credit check. Because of this, even startups with no business credit can get in on it. Then the vendor will report on-time payments to the credit agencies. Thus the vendor credit tier is the best first step toward building business credit.
There are several different options for starter vendors. A couple of the most common include:
Check out starter vendor Marathon. Marathon Petroleum Company provides transportation fuels, asphalt, and specialty products throughout the United States. Their comprehensive product line supports commercial, industrial, and retail operations. This card reports to Dun & Bradstreet, Experian, and Equifax. Before applying for multiple accounts with WEX Fleet cards, make sure to have enough time in between applying so they don’t red-flag your account for fraud.
To qualify, you need:
• 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
• Business phone number listed on 411
Your SSN is required for informational purposes. If concerned they will pull your personal credit talk to their credit department before applying. You can give a $500 deposit instead of using a personal guarantee, if in business less than a year. Apply online. Terms are Net 15.
Uline reports on-time payments to Dun & Bradstreet as well. They carry shipping boxes, trucks and dollies. Janitorial supplies are available as well, among other things. You must have a DUNS number to start. They will also ask for a bank reference plus two other references. Prepayment may be necessary at first, but after they will usually approve Net 30 terms.
Check out just how we can help you build business credit.
These and others in the vendor credit tier should be at the top of your list of those to be thankful for when establishing business credit fast.
If the vendor credit tier is the turkey on the establishing business credit fast Thanksgiving table, secured credit cards are the pumpkin pie. Sweet and delicious, this is what everyone looks forward too. You do not want to overdo it, however.
Secured credit cards are easier to come by than their traditional counterparts. This is especially helpful when you are working on establishing business credit fast. When it comes time to report payments to the credit agencies however, they work just the same. If you make your payments on time, you can increase your business credit score by several points. The best part is your bad credit or lack of credit will usually not keep you from approval for a secured credit card.
It is best to keep it to a small slice of the credit pie. Just obtain a small secured card. Something with a $300 to $500 credit limit will work well. Try not to use it for things that you cannot repay immediately. You could use your secured business credit card to buy supplies from one of the starter vendors mentioned.
Then, when you pay your card consistently on time, the lender reports to the credit agencies. The vendors report their on- time payments as well, and you get double credit! How’s that for establishing business credit fast?
The traditional side dish to the turkey on Thanksgiving is dressing, or stuffing, depending on what part of the country you are in. In building business credit terms, small business loans- no credit check necessary are the most like this delicious side dish.
To be fair, just as this carb filled dish can leave you dull and tired if you go overboard, some of the no credit check business loans can do the same for your business. If you are not careful, the high interest rates and less favorable terms required by the lender to reduce risk, in place of a credit check, can get you in trouble.
Handled properly however, these can be a serious business credit building tool.
Kiva breaks most of the rules when it comes to small business loans that do not require a credit check. The loans are true loans in the sense that the money must be repaid. However, the interest rate is 0%. There is no credit check. You do have to lend $25 to another business on the platform however. You also must gather a certain number of lenders from your own network of family and friends.
Aside from Kiva, there are many non- traditional lenders that either do not require a credit check, or the minimum credit requirement for approval is very low. A few of these include:
To get a loan from Accion you cannot have a huge amount of personal debt. Their minimum credit score requirement is 575. In some instances they will go as low as 500.
You business needs to be home based, and it has to be in business for at least 6 months to qualify. Usually a personal guarantee or some specific collateral is part of the deal as well.
BlueVine offers business lines of credit and invoice factoring. For a line of credit, the minimum credit score is 600, and you must be in business for at least 6 months. They will approve on a credit score as low as 530 for invoice factoring if you are in business for at least 3 months.
In addition to specific products, there are also certain agencies that can help you out when it comes to building business credit. The Small Business Finance Exchange, or SBFE, is one such agency. It is similar to grandma on Thanksgiving. She has the best food made with the freshest ingredients, and her hugs are to die for.
What does the SBFE cook, and how can you partake? Basically, they collect credit information and pass it on to its members. That information is then used to make credit decisions. How do you benefit? Try to do business with SBFE member if you are working toward establishing business credit fast. Then, you know your credit information is being collected. That means it is available to lenders that use their information.
Find out more about the Small Business Finance Exchange here.
This is the most popular agency for reporting business credit. It is complete and thorough. Keeping with the context of the Thanksgiving meal, it is similar to Aunt Sally. Depending on her mood, she may be helpful, or hateful. It could go either way. If you are making on-time payments and they are being reported, you are definitely thankful for D&B.
If your past credit decision weren’t so great, this one may not be at the top of your list of thankfuls just yet. You can get it there though.
Who isn’t thankful for capital that they do not have to repay? Crowdfunding, when it works, can be just that. It isn’t a sure thing, but it is definitely worth a shot. This would be your favorite uncle at the Thanksgiving dinner. You can ask him for help, and he may very well bail you out. He could also say no and tell you he is practicing tough love. Again, it could go either way.
Crowdfunding works by allowing businesses to post information on a public platform for potential investors to read. Investors can choose which businesses look interesting and read more. Then they choose to invest, or not, based on the information posted.
The really cool thing is that pretty much anyone can invest. They can pitch in as much or as little as they want, even a $1 is acceptable. There are many crowdfunding platforms now. The two most popular are probably Kickstarter and Indiegogo. They are very similar to each other, with minor differences.
In terms of establishing business credit fast, consider this. The money from crowdfunding campaigns can help you repay debt, thus making your credit stronger, faster.
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You know you can always count on grandpa to offer sound advice. That is kind of how the SBA is. They offer help for small businesses in a variety of ways. Not all of these ways are helpful for building business credit, but they are all helpful for building your business.
While they do not offer loans directly, they do work with lenders to secure loans. These loans go to businesses that might not otherwise qualify based on the lender’s own requirements. They require a lot more work as far as the application process goes. The requirements for qualification are much less stringent, however. Then, if you make your payments on time, you will be building business credit like nobody’s business.
In addition to loans, the Small Business Administration offers grants to certain types of business owners. Business owners that serve in the military, are women or minorities, or own businesses in low income areas may be eligible for grants. Though grants do not help you with establishing business credit fast directly, they can definitely relieve financial stress. This makes sending in on-time payments to creditors easier.
Good employees are like your favorite cousins. They make the meal so much more fun. In fact, they are the reason Thanksgiving is something you look forward to all year long. You sit at the kids’ table and eat and laugh and make fun of the adults, and then you go home with great memories.
This is what good employees are to your business. Not only do they make the day in and day out more fun, but they make the business what it is. People come back for great products and service, and your employees are what makes that happen. Without good employees, you do not have a good business. You cannot get busy building business credit until you have a business worth building.
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Few things are as freeing at outsourcing certain tasks. At Thanksgiving, this may mean you order dessert from a local bakery or order the whole meal from somewhere else. This can allow you to spend more time focusing on what matters most, your friends and family.
Commonly outsourced tasks in a business included accounting, payroll, legal tasks, and cleaning. When you do this, you do not have the stress of oversight, for the most part. You can focus on increasing revenue. This in turn, helps you pay your bills, which is main ingredient in building business credit.
This is how it all goes down. Execution is key. Your planning may be as simple as assigning everyone a dish to bring and having a kids table and an adult table. It may be as elaborate as spending hours trying to determine who should sit where and providing fancy name cards for each seat. Either way, a strong plan will help ensure the day goes smoothly.
When you hit troubled waters in a business, you will be thankful for a strong business plan. If you refer to what it says, you will remember your mission and goals. This can help you adjust your course as necessary to continue moving in the right direction. It is a powerful step in establishing business credit fast and moving toward continually building strong business credit.
Just as you need to prepare before you have the Thanksgiving meal, you must also prepare to begin building business credit. For the dinner, you must buy groceries and clean your home. Preparing to build business credit looks something like this:
1. Incorporate your business, or at least obtain a DBA. You need to establish it as an entity separate from you.
2. Get a separate business banking account.
3. Get your business its own phone number and address. It should be an 800 number or some other toll-free exchange.
4. List your business contact information in all the directories.
Use All Available Resources for Building Business Credit
When you have no credit or bad credit, it can seem like there is no hope. However, there are some tools that can help you build business credit. Be thankful for them, but more than that, use them! Handled properly, they can help ensure your business thrives for years to come.
We are so thankful you’re with us! Share this if you agree with how to build business credit.