Building business credit with California Shelf Corporation
Building Business Credit
If you don’t have a high enough FICO score to apply for these choices, you can begin establishing business credit instead.
Vendor Business Credit
Using vendors is a proven method of establishing business credit. Not every vendor registers trade credit to credit bureaus, so find out if yours does and take appropriate action. You will begin once you have 5-8 credit accounts reporting through vendors.
Retail Business Credit
Microloans, which can be obtained from microlenders, are another option for your enterprise. You will locate a nearby microlender via the Association for Business Opportunity at www.microenterpriseworks.org/. If your company only requires a small sum of capital, such as $500-$35,000, microloans are an excellent option.
Fleet Business Credit
If you have at least ten retail credit lines reporting in the retail credit category, you can advance to the fleet credit tier. Chevron, for example, provides fleet credit. Fuel, upgrades, and upkeep are all paid for with fleet credit.
Continue to create credit above these tiers through exchange accounts. Open exchange accounts for all of the suppliers with whom you routinely do business. You should aim for 10-14 exchange accounts. Utilities may also be useful if they disclose business credit.
Cash Credit Tier
When you have 14 fleet credit lines records, you can advance to the cash credit rate for companies including Visa and MasterCard. For too many payment interactions and sufficient time in the industry, the company can be able to apply for traditional loans.