Published By Janet Gershen-Siegel at February 24, 2018
How hard is it to establish business credit? Is business credit building impossible?
When you are first beginning to build corporate credit, your first step needs to be to get merchant or trade credit. You will want to get into excellent credit patterns – everything from not borrowing too much, to paying off your debts back on time, to staying on good terms with your sources of credit. The most crucial thing you can possibly do, which will make the quickest and biggest beneficial difference, is to pay off your bills on time or in advance, and build a responsible and good payment record.
You will need to start a commercial credit profile and score with what are termed starter vendors (AKA trade accounts or trade lines). Starter vendors are ones who will bring your small business initial credit even if your company has no credit, no score, or no trade lines. Note that the majority of the more prominent and better known stores like Staples or Walmart will not extend to you initial starter credit, so do not even attempt applying with them.
Here are three vendor accounts that you can use to start to build up your commercial credit. Take note: if you are declined in the beginning, keep making an effort!
This company offers shipping, packing, and industrial supplies. These feature janitorial products, shipping boxes, and material handling products like hand trucks and dollies. Most notably, they report to Dun and Bradstreet. Consequently, your company must have a DUNS number before you begin attempting to get vendor credit with them. Uline will request two references and a bank reference. Your initial few orders might have to be prepaid initially to make sure that your business can get approved for Net 30 terms.
They sell office, packaging, and cleaning materials. Their products also feature toner, office furniture, and even coffee and snacks. You can even get your small business’s coffee machine through them.
Quill reports to Dun and Bradstreet. You have to place your initial order before anything else unless your D & B score has already been developed. In general, they will place you on a 90 day prepayment schedule. And also if you order items each month for three months, they will usually authorize you for a Net 30 Account.
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 appear on your commercial credit reports. And if you would like their CD, you can order it there.
Obtaining merchant accounts for business credit means that you are on your way to getting good business credit. Once you have greater than five vendor accounts and they are all reporting with the bigger business credit bureaus, then you can begin trying to get store credit. These three should conveniently get you started.