Business Tradelines – How and why you should build a business credit profile
Many small business owners have to start out by using their personal savings or assets to finance their business ventures. Once a business starts to grow or in order to create more growth, they are forced to seek credit or other investment solutions.
You can build your business credit profile to obtain financing without a personal guarantee if you create a balanced business portfolio that meets the lender’s requirements.
As a business owner, the most vital part of the growth of your business is funding. Business owners quickly realize that applying for business funding is a much more complex process than applying for personal credit.
How Should You start to Build a Business Credit Profile?
In order to obtain business financing, you must know where you are right now and you should know exactly what financial lending you are planning to apply for through Pre-Qualifying methods and know exactly what the lender needs to see in order to obtain your financing.
There are over 4,000 lending institutional sources of business capital in the United States and each one has different criteria for funding a deal.
Once you know the requirements and which business credit you are going for it’s time to prepare your business foundation at least 3 months before your business will need funding.
If you are not prepared and apply at multiple places without pre-qualifying yourself, you can damage your credit and destroy your chances of receiving funding from sources that would have been approved.
What do you need to set up the foundation for your business credit?
You are setting up your business so that the lenders will feel that you are an established growing business that will be able to pay back the loan.
Things you will need to establish your Business Credit:
- EIN Number
- Business
- Bank Account
- Business Listing in the directories such as 411 and Yelp
- Office Address (one that can be found on google)
- Social Media
- Linked In
- Website
- Office number and address that is listed so lenders can find you
- Dunns Number
- 75-80 Paydex Score
- Business Tradelines
Building vendor credit is the secret to getting approved for the initial trade lines to start building business credit and establishing a positive business credit score to get approved for revolving credit card sources.
Starter Vendor Sources to Build Business Credit
The following accounts are perfect starter accounts for business credit building. They are great accounts because they work for most businesses, including startup businesses.
1. Radio Shack is great for business credit building. Radio Shack offers products most business owners need and want such as computers, phones, batteries, cables, and connectors. Radio Shack is one of those creditors who report to D&B and Experian.
2. Quill sells office supplies, cleaning supplies, packing and shipping supplies, school supplies, printing supplies, and more. From filing and storage to hand-held computers. Quill reports to B&B. Typically, they require that a business place its first order before being considered for a Net 30 account.
3. Zippy Credit Score Repair will make sure your business is in corporate compliance with all documents, including Articles of Incorporation, Corporate Minutes, and Corporate Resolutions along with getting your EIN number.
4. Power Marketing Agency offers many web and technical services, including website creation. They offer affordable websites.
They also help businesses create professional email addresses, logo designs, and web banners. Business owners must provide valid proof that their business is operating in the US. Click here to find out more and get your business credit started today.