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How to Build Credit for A Business: The Truth About Fast Business Credit

Published By Faith Stewart at April 14th, 2022

How to Build Credit for A Business: The Truth About Fast Business Credit

Business credit is a journey, not a destination. It’s not somewhere you get to, but rather a road you travel down, continually making progress.  It’s time to change our mindset from business credit being a thing you get quickly, to being a thing you can start building quickly, and then continue building upon. This is the truth behind fast business credit

How to Build Credit for a Business: The Truth is Growth Takes Time

Growing your business credit portfolio doesn’t happen overnight. Your portfolio can grow over the life of your business. The key to speed is to get accounts that will build business credit while growing your portfolio at the same time.

The Keys to Building Business Credit

Start with a Fundable Foundation. Then, get initial accounts reporting. Knowing which accounts will approve you and report positive payment history is essential.

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A Fundable Foundation Includes:

  • Separate, consistent contact information
  • EIN
  • Incorporate
  • Fundable foundation
  • Separate business bank account
  • D-U-N-S Number
  • Profession, user friendly business website and email address on same domain

Initial Accounts

With a Fundable foundation, you can start applying for initial accounts. These are limited, but as you grow, more tools become available. There are not a ton of vendors that offer credit without an established business credit score, and of the ones that do, even fewer report positive payment history.

Even if they do, they do not always make it easy to find that out, or what they require for approval. Applying for and using smaller accounts that report sets you up to qualify for accounts that are harder to get in the future.

The major roadblock when it comes to building business credit is finding accounts that you both qualify for and that will report positive payment history.

Trial and Error is Slow

If you just start applying for credit in the name of your business, without knowing if you qualify or if they will report, your progress will be slow.

How to Build Credit for a Business: The Business Credit Builder

how to build credit for a business Credit Suite2 - How to Build Credit for A Business: The Truth About Fast Business CreditThis is the beauty of the Credit Suite Business Credit Builder. We find the vendors for you and tell you which ones to apply for and when. This saves you an abundance of time.

In fact, we gather all of the business credit building blocks together in one place and tell you when it is time to use each one. We offer lists of vetted vendors as you become eligible for them. This cuts out considerable time over the trial and error method.

When you know specifically which accounts will approve you and report your positive payment history, you stop wasting time on accounts that will do neither.

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The Secret Benefit of the Business Credit Builder

Once you complete the steps, the initial building process is done. However, you aren’t finished growing your portfolio. That process continues. The Business Credit Builder has a large list of advanced vendors. These vendors extend credit to businesses based on business credit scores, but they may not report.

Still, they are important to your business credit portfolio. They allow you to get supplies you need to serve your clients and pay for them after you are paid for the job. As you grow, you can ask for higher limits. The best part is, you have access to this list for 5 years!

The Beauty of a Strong Business Credit Portfolio

Think of a business credit portfolio as a pool of various types of business credit. You can leverage it to run your business successfully. This “pool” will allow you to further business growth and success.

How to Build Credit for a Business: It’s Okay to Use Personal Guarantees

A well-rounded business credit portfolio can include both PG and non-PG financing. In general, personal guarantees should be avoided, but sometimes you just can’t avoid them. If a personal guarantee will help you qualify for funding or credit cards, and you wouldn’t qualify without it, it can be smart to offer one.  This is especially true if they report payments to the business credit CRAs. Then they can help you build your business credit score.

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How to Build Credit for a Business: The Truth

You can get business credit quickly,  in the form of vendor credit, soon after you set up a Fundable Foundation. But, you won’t get anywhere on vendor credit alone. You need a variety of types of business credit accounts. The only way to get those is to continue building on the accounts you have and manage them responsibly.

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