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Vendors Who Help Build Business Credit

Published By Janet Gershen-Siegel at August 26th, 2018

Vendors Who Help Build Business Credit

Are You Looking For Vendors Who Help Build Business Credit?

When you are initially beginning to set up corporate credit, your first step needs to be vendor or trade credit. You want to get into good credit practices. This means you are going to need vendors who help build business credit.

Details on Building Business Creditvendors who help build business Credit Suite2 - Vendors Who Help Build Business Credit

So this is everything from not borrowing too much, to paying your debts back on schedule, to staying on good terms with your sources of credit.

The absolute most vital thing you can do, which will make the swiftest and biggest beneficial difference, is to pay off your invoices punctually or early. This way, you establish a responsible and good payment record. It matters far more than virtually anything else you can do.

So keep in mind you will need to do this regardless of which vendor(s) you work with.

Get Started

You will need to start a corporate credit profile and score with what are called starter vendors. These are also known as trade accounts or trade lines. Starter vendors are ones who will bring your small business initial credit even though your firm has no credit, no score, or no trade lines.

Note that the majority of the more prominent and better known merchants like Staples or Walmart will not give you initial starter credit, so do not even try starting a business credit application with them.

Here are three vendor accounts that you can use to start to develop your corporate credit. And be sure to keep in mind: if you are rejected in the beginning, keep making an effort!

778513 InfoGraph Vendor Account Types 1 091520 - Vendors Who Help Build Business Credit

1. Uline Shipping Supplies

This company offers for sale shipping, packing, and industrial supplies. These feature janitorial materials, shipping boxes, and material handling products just like hand trucks and dollies. Most importantly, they report to Dun and Bradstreet and Experian.

That is why your business must have a D-U-N-S number before you start trying to get vendor credit with them.

Uline will want two references and a bank reference. Your initial few orders might need to be prepaid at first so that your company can get approved for Net 30 terms.

2. Grainger Industrial Supply

Grainger Industrial Supply sells hardware, power tools, pumps and more. They also do fleet maintenance. To qualify, you need the following: a business license, An EIN number, and a D-U-N-S number from Dun & Bradstreet.

For less than $1,000 credit, they will approve nearly anyone with a business license. For over $1,000 credit, they want to see trade and bank references. Fax them your application or apply over the phone. You can visit them online at: www.grainger.com.

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3. 76

Check out 76 online at:  76fleet.com. Buy fuel through 76, at more than 1800 sites in the United States.

76 reports to all three of the big business CRAs: Dun & Bradstreet, Experian, and Equifax. That makes them extremely valuable for building business credit.

But keep in mind, before applying for multiple accounts with WEX Fleet cards, make sure to have enough time in between applying so that they do not red flagged your account for fraud.

Qualifying

  • Your corporate entity must be in good standing with the applicable Secretary of State
  • You must have an EIN and a D-U-N-S number
  • Business address (it has to match everywhere)
  • Business license (if applicable)
  • A corporate bank account
  • Business Phone Number Listed in 411
  • SSN is required for informational purposes. If concerned they will pull your personal credit, talk to their credit department before applying

If not approved based on business credit history or been in business less than 1 year, then a $500 deposit is needed or a Personal Guarantee(PG)

Can be used at any P66, 76, or Conoco fueling location.

To Apply

Online or over the phone

Terms

Net 15

Bonus: 4. Marathon

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
  • A 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. Get it here: www.marathonbrand.com.

Revolving Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, great! Now you can progress to revolving store credit.

Use the business EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. Use this credit to purchase fuel, and to repair and take care of vehicles. Also, make certain to apply using the company EIN.

More Universal Bank Credit Cards

After that, the next stop is more universal bank credit cards. Keep your SSN off these applications.Use your EIN instead.

These are normally MasterCard credit cards. If you have more trade accounts reporting, then these are doable.

Use your credit responsibly and start with the vendors who help build business credit.

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Keep Your Scores High

The easiest way to keep your scores high is to know what those scores are in the first place.

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and address any mistakes as soon as possible. Get in the practice of taking a look at credit reports. Dig into the details, not just the scores.

We can help you monitor business credit at Experian, Equifax, and D&B for a lot less than it would cost at the CRAs. Update the data if there are errors or the details is incomplete.

Challenging Problems

So, what is all this monitoring for? It is to contest any problems in your records. Errors in your credit report(s) can be corrected. But the CRAs typically want you to dispute in a particular way.

Details

Disputing credit report inaccuracies normally means you mail a paper letter with copies of any proof of payment with it. These are documents like receipts and cancelled checks. Never send the original copies. Always mail copies and retain the original copies.

Disputing credit report mistakes also means you precisely detail any charges you challenge. Make your dispute letter as clear as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you mailed in your dispute.

A Word about Building Business Credit

Always use credit sensibly! Do not borrow more than what you can pay back. Track balances and deadlines for payments. Paying on schedule and fully will do more to elevate business credit scores than nearly anything else.

Growing company credit pays. Great business credit scores help a company get loans. Your lender knows the business can pay its financial obligations. They understand the small business is authentic.

The company EIN connects to high scores, and lenders will not feel the need to demand a personal guarantee.

Business credit is an asset which can help your small business for many years to come.

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Takeaways on Vendors Who Help Build Business Credit

So, getting merchant accounts for small business credit means that you are on your way to acquiring excellent business credit.

Once you have more than five vendor accounts and they are all reporting with the bigger business credit bureaus, then you can start getting store credit. These should easily get you started.

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