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Building Business Credit for Small Business

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How to Get Business Credit from an Online Retailer

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Business Credit Online

For many retailers, offering business credit online is a great sales tool and powerful way to attract more small business owners to purchase their products and services.

As a business owner, when you open a business credit account with an online retailer you have the ability to purchase their products/services on credit with the invoice due in 30 days. (net 30 payment terms) business credit online

This helps conserve cash flow and is a great way to start building a credit history for your business.

In today’s post we are going to show you how to get business credit from an online retailer. It’s important to realize the qualification standards are much easier when you apply for net 30 credit terms compared to other types of credit such as business credit cards and bank lines of credit.

The reason is the majority of retailers, vendors and suppliers offering business credit on net 30 terms will not conduct a personal credit check. Instead, they check your business credit report, require a bank reference and contact the trade references supplied on the credit application.

Business credit (net 30 accounts) issued from an online retailer can be used on purchases made only at that online retailer’s store or family of stores. The exception is when a retailer is offering an actual business credit card co-branded with Visa® or MasterCard®.
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Stop Using Personal Credit Cards for Business: 5 Reasons Why

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Using Personal Credit Cards for Business

What do you use to pay for your business purchases?

Do you use a personal credit card?

If so, you’re not alone. using personal credit cards for business

In fact, over 65% of all small businesses use credit cards on a regular basis but less than 50% of those cards are actually in the company’s name.

In today’s post you’re about to learn why using personal credit cards for business purchases is dangerous and can cost you more than you think.

Here are five key reasons to stop using personal credit cards for business purchases:

1) Impacts Your Credit Utilization – Using a personal credit card for business purchases directly impacts your individual and overall credit utilization ratios. These ratios are one of the factors that make up your FICO® scores.

In fact, the second most important factor that impacts your credit scores is your debt.  The credit scoring system heavily weighs your debt usage. This is where a scoring model such as FICO® takes the size of the credit limit on each card and compares it to the balance owing being reported by the card issuer. (credit limit vs amount owing)
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5 Powerful Ways to Start Building Business Credit Fast

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Start Building Business Credit Fast

What’s the best way to start building business credit fast?

If you want to start off fast and build your business credit file as soon as possible then this post is for you. We are going to cover five proven ways to establish credit in your company’s name while protecting your personal credit at the same time. start building business credit fast

So, whether you need access to working capital, accept credit card payments, conserve cash flow or manage fuel costs; you can start building business credit fast with each one of these.

First, before you take action you will want to set up a separate legal entity for your business. Secondly, obtain an employer identification number (EIN) which is not only used for tax filing but also to establish a unique credit identity for your business.

It’s also crucial that your company is ‘credit ready’ meaning that it meets the standard requirements that banks, lenders, suppliers, retailers and vendors use as part of their credit decision making process.

By the way you can find more details on lender compliance in our post ‘How to Build Business Credit Step by Step’.

Here are 5 ways to start building business credit fast:
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