Building your business credit report
A business credit report can be started in the same way as a consumer report, with small credit cards.
The business may be approved for small credit cards to help them build an initial credit profile.
These types of initial cards in the business world are commonly called “vendor credit.”
Net 30 terms are common with most sources of supplier credit. This means they will give you credit on a “net 30” basis, giving you 30 days to pay the bill you owe in full.
Some companies will ask you to buy their products, while others will not.
Some companies will ask you to pay for your first orders, others won’t.
Some companies report your credit very quickly and do so quickly, others don’t.
Keep an eye out for all of these things when you apply with providers.
Always apply first without using your SSN. Some vendors will request it and some will even tell you over the phone that they need to have it, but send it in without it first.
Most people you talk to at credit issuers don’t even know that you can get business credit without providing your SSN, so follow these steps I describe and don’t apply with your SSN.
When your first Net 30 account reports your “business line” to Dun & Bradstreet, the DUNS system will automatically activate your file if you haven’t already. This is also true for Experian and Equifax.
Some of the more popular supplier sources include: Uline, Laughlin & Associates, Quill Office Supplies, and Reliable Office Supplies.
Next, start creating rotating accounts…
You’ll need a total of five reported checkout experiences to start earning revolving store credit.
Don’t apply for store credit with no checkout experience, no score, and no profile, or you’ll be denied.
Most major retailers offer revolving business credit. To get approved, they’ll want to see that you have established payment experiences, an established credit profile with at least two reporting agencies preferably, and positive credit scores with the reporting agencies your credit reports on.
Your top business credit scores are based on the time period in which you pay your bills.
So to have good scores, you just need to make sure you pay your bills on time or early, the sooner the better.
So even with net 30 provider terms, try to pay your bill as soon as you get the highest scores possible.
Remember, many credit issuers have their computers automatically approve your files. These computers are looking for high scores, so give them what they want.
You must have five reported payment experiences to begin applying for revolving credit. Some starter revolving accounts include: Radio Shack, Lowes, Home Depot, Staples, and Office Depot.
Most major stores offer business credit even though they don’t advertise it. So once you’ve followed the steps outlined here, you can start earning credit with these major retailers: BP, Chevron, Walmart, and Target.
These stores also offer business credit: Amazon.com, Best Buy, Nordstrom’s, Sam’s Club, Costco and many more.
Finally, get CASH credit…
Once you have a total of 10 payment experiences, you can start getting approved for cash credit sources.
It is also recommended that you have at least one account with a high credit limit of $10,000 to keep your cash limits as high as possible.