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Building Business Credit for Small Business

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5 Strategies to Build Business Credit Easily and Quickly

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Build Business Credit

In today’s post we share five key strategies for building business credit easily and quickly. These five strategies provide a fast and efficient way to establish your business credit file with major business credit reporting agencies.

If your new to building business credit it’s important to recap on why it’s an essential step in the success of your business. So, what is business credit?

Business credit is the ability for a business to borrow money or access products or services with the understanding that the business will re-pay at a later date.

Building business credit allows a business owner to protect personal credit while establishing the creditworthiness of the business itself. building business credit

When you structure your business as a corporation or limited liability company it becomes recognized as a separate legal entity with the ability to enter into contracts.

Your company’s Employer Identification Number (EIN) is used to identify your business entity to the IRS, banks, lenders, suppliers, vendors and other businesses.

Your EIN is also used to create a credit file for the business with business credit reporting agencies such as Dun & Bradstreet, Experian Commercial, Equifax Business, Creditsafe and Ansonia.

Think of your company’s EIN as the social security number for the business.

Here are 5 strategies to start building business credit easily and quickly.
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Top 5 Net 30 Vendors for Building Business Credit

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Net 30 Vendors for Building Business Credit

In today’s post we’re going to share with you our top five net 30 vendors for building business credit. Best of all, these five vendors will extend credit to your business without a personal credit check or personal guarantee. net 30 vendors for building business credit

Whether your business is just getting started or if you’ve been in business for some time, these five vendors will provide you a jump start in building business credit.

As you know, establishing a credit file for your business occurs when companies, suppliers, vendors, lenders, etc. share your payment experience with an agency they share data with.

First, let’s cover why you should use a net 30 vendor?

When you get approved for a credit line with a vendor you have the ability to purchase their products and services on credit and defer payment for 30 days. This allows you to conserve cash flow while establishing business credit at the same time.

To get approved there are minimum requirements that virtually any business can meet. Such as an incorporated business, employer identification number, business bank account, etc.

The vendors we list in this post will not require a credit check or personal guarantor. This allows you to create a clear separation between you and your business.

Look at vendor credit as a stepping stone to greater financing opportunities. With multiple tradelines reporting, you provide other credit grantors the ability to assess how you manage your business credit. They assess your creditworthiness by pulling your business credit report.

Why build business credit?
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Score Based Business Line of Credit with Soft Pull and No PG

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Score Based Business Line of Credit

I’m excited about today’s blog post because we are going to show you how to get an unsecured business line of credit with a soft pull and no personal guarantee.

This is an actual line of credit that you can acquire that not only builds your business credit but also protects your personal credit too.

So, before we get into details on applying, let’s talk about what a score based business line of credit is. score based business line of credit

This credit line provides two ways for you to access funds up to your approved credit limit.

Draw Cash Online – You can draw cash from your business line of credit directly to your business bank account via your online account portal. Once logged in you can select how much funds you want deposited into your account up to your credit available.

The benefit of this function is no cash advance APR. With standard business credit cards, you are limited to how much cash you can advance. Also, if you do there is a cash advance APR that is triggered on the amount advanced which is typically above 20%.

Business Credit Card – A World Business MasterCard® is issued to your company which can be used for purchases up to your credit limit.

Now, once you use your credit line there are several options to repay your outstanding balance. You can either pay the minimum monthly payment, pay more than the minimum monthly payment or pay the balance in full.

The annual interest rate ranges from 9.9% – 19.99%. The rate issued to your company will depend on how strong your personal Experian FICO® score is since this is based on your score alone.
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How to Build Business Credit When Paying Your Business Expenses

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How to Build Business Credit

In today’s post we’re going to talk about a key fundamental step for building business credit for your company.

While acquiring credit from vendors, suppliers and other businesses that report to the business credit agencies is a widely known practice for establishing business credit; why not also have your business expenses build business credit too? How to Build Business Credit

The fact is, if you have a business, you will have business expenses. These are costs you have in the ordinary course of running your business day-to-day. For example, putting gas in your car to go to a business appointment, taking a client out to lunch, paying utility bills, paying for postage to ship a product, etc.

When you pay for these expenses, it’s crucial to keep your personal finances separate from your business finances. You don’t want to commingle these expenses because it will cause a real challenge during tax time.

In addition, you should establish a budget, keep good records and implement an effective business credit building strategy.
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