There are many advantages to building business credit fast. To double the borrowing ability, you can build credit in a credit profile that is separate from your business’s predict profile. This is more beneficial than consumer credit, as it has much higher credit limits and capacity. You can build business credit very quickly (30-90 days from the initial profile set-up), and it can be done without a personal credit check. Regardless of personal credit quality, one can build business credit without personal credit reporting of business accounts. Credit can usually be obtained without the owner having liability. This means that personal assets cannot be pursued. Another advantage of business credit: it increases credibility. Since credit reports are public, prospects, clients, lenders, competitors, credit issuers, or someone interested in purchasing your company can view and confirm your credibility. Business credit can be obtained by almost any company if they have an entity setup and EIN. Neither collateral nor financials are necessary to build business credit. Startup businesses can also build business credit if they follow the correct steps.

Cash credit, store credit, and vendor credit are the three main types of business credit. Cash credit refers to credit cards which can be used anywhere (Mastercard, Visa, Amex). Store credit is available at retail stores. Vendor credit (usually with a net 30 terms) refers to the type of credit used in starting a business. It is used to start a credit profile and score.

A new business tries Building Business Credit Fast the same way that a consumer does. A business starting with no credit profile gets approved for a new credit profile. The business uses credit and pays back the credit in a timely manner. The credit reports to reporting agencies. The business credit being paid back on time establishes positive business credit, and the business then qualifies for more credit to use.

A new business Builds Business Credit in 2023 the same way that a consumer does. A business starting with no credit profile gets approved for a new credit profile. The business uses credit and pays back the credit in a timely manner. The credit reports to reporting agencies. The credit being paid back on time establishes positive business credit, and the business then qualifies for more credit to use.

When presenting a business credit application, you must use your exact business name, the same one that is on file in state records. These names of the business is one of the biggest reason an applications is denied. The name on the application must match the Secretary of State record and the business license. You should also check that your business name is the same on shelf corporation papers, bank statements, and licenses. The full business name that you use should include any recorded DBA filing that you will use.

Just like every person has a Social Security Number, every business must have a Federal Tax ID number. Your business must have a Federal Tax ID number (EIN) regardless of whether you have employee numbers. This is one of the items vendors look at when approving business credit, so it is essential that it is done correctly. You should also ensure that banks, agencies, and trade credit vendors list your business’s correct Tax ID number.

Some lenders will not approve funds for your business unless you have a real business address. This means having an address of a real building that is not a home address, UPS address, or PO Box.

Another essential item that vendors look for when considering approval of Corporate Credit is the business’s phone number. A dedicated phone number with a 411-directory assistance is required. It should not be a home or personal cell phone number. It must be under the business name. It should have an 800 number as well as a fax number. Voice Over IP numbers are acceptable as long as you do not use a home or cell number. Go to ListYourself.net to register with 411.

When considering approval, credit providers research the companies they are approving. Therefore, it is essential to have a professional website where they can learn everything they need to know about your company. A professional email is also necessary and is inexpensive and simple to create. An example of an address: yourname@yourcompany.com. A company lacking either of these items appears unprofessional and uncredible.

Before applying, contact your State, County, and City Government offices to determine whether you need any type of license or permit for your business. Do not apply until your company is appropriately licensed.

Make sure all of the bills being mailed to your company (phone, landlord, power, etc) have your business name listed correctly. Also verify that agencies such as the State, Bank, IRS, and 411 national directory list your legal name and your business’s name correctly.

To begin building a Dun & Bradstreet credit profile, you can obtain a Dun & Bradstreet number (D-U-N-S #). Your number will help enable your business to borrow without a personal guarantor (free at http://www.dnb.com/). You can enroll for the DNBi SelfMonitor to keep track of your credit while you are building it. This costs $39-$99/month. You can also buy a package from them for $2,000.

You can purchase a report from Experian for $49-$99 at http://www.smartbusinessreports.com/. You can also view recent inquiries, check to see if you have an active Experian Business Profile, view how many trade lines are reporting, and check to see if you have a business credit score assigned yet.

To purchase a copy of Equifax Small Business Credit Report, visit http://www.equifax.com/small-business/credit-report/en_sb. It is important to apply with credit providers who report to Equifax, as creating a profile with Equifax usually takes more time than with D&B and Experian.

It is important to understand how to read business credit reports, as they are very different from consumer reports. Most reports contain five scores assessing the risk of different things. The Paydex score, which is based on the business’s payment history, is the main score used in business.

Start-up businesses with no credit must use vendor accounts to build initial credit. These accounts give your business credit, which reports to a reporting agency. In this way, you build your business and receive business credit simultaneously.

Vendor accounts work by extending a line of credit to your shelf company. This means that you purchase goods and services that your company will use on Net day terms. You are given 15, 30, 60, or 90 days to fully pay for the product. For example, if you bought $500 worth of products from a company on Net 60 terms, you would have 60 days to fully pay the $500 back. Some companies will approve you for this based on just your 411 listing and EIN number. First, apply for the account. When you get it, use the credit and spend more than $50. The accounts will report the way in which you paid back your bill, so you want to pay it back early or on time. The accounts report to their reporting agencies in 30-50 days (or up to 3 reporting cycles), which creates a credit profile for your business. Paying back credit early gives you a good credit score and provides you with multiple trade lines. To move onto store business credit, you need to acquire five reporting accounts.

When starting a business with no credit, you need to utilize starter vendors. Starter vendors give businesses initial credit, even when they have no credit, score, or trade lines. You should not try to apply for initial starter credit from large stores such as Staples.

Reliable Office Supplies to D&B, Business Equifax, and Business Experian. They sell promotional products and office supplies. To build credit with this company, place an order and request the order to be invoiced or billed to your company. After you do this, they will pull your credit. If they do not approve you, repeat these steps until they do so.

Laughlin Associates, who deal with compliance and corporate setup, only require a 411 listing and EIN. They report to Experian. They report with 30 Net terms within 30-60 days.

Monopolize Your Marketplace reports to Experian. They sell a10 audio CD set which details everything you should know as a business owner about business and marketing. When checking out, choose the “4 equal payments of $59.99” option. You will need an EIN, bank account, and deliverable address for this purchase. The first charge comes 30 days after ordering. Reporting takes 30-60 days.

When Building Business Credit Fast, you will likely get vendors who you won’t use often. Do not include your SSN on the business credit applications. If you start with store credit, you will be denied, wait until you have 5 accounts reported. Apply for cash only when you have 10 reported accounts. Remember to pay your bills early, as this is the key to achieving a good credit score.