A business credit report can be started much the same as a consumer report commonly is, with small credit cards.
The business can 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 referred to as “vendor credit”.
Net 30 terms are common with most vendor credit sources. This means they will give you credit on “net 30” terms, giving you 30 days to pay the bill you owe in its entirety.
Some companies will require you buy their products while others won’t.
Some companies will have you pay for your first couple of orders, others won’t.
Some companies report your credit very quickly and it reports quickly, some don’t.
Look out for all of these things when applying with vendors.
Always apply first without using your SSN. Some vendors will request it and some will even tell you on the phone they need to have it, but submit first without it.
Most people you speak with at the credit issuers don’t even know that you can get business credit without supplying your SSN, so follow these steps I outline and don’t apply with your SSN.
When your first Net 30 account reports your “tradeline” to Dun & Bradstreet, the DUNS system will automatically activate your file if it isn’t already. This is also true for Experian and Equifax.
Some of the most popular vendor sources include: Uline, Laughlin & Associates, Quill Office Supplies and Reliable Office Supplies.
Next, start building revolving accounts…
You will need a total of five payment experiences reported to start getting revolving store credit.
Don’t apply for store credit with no payment experience, no score, and no profile, or you WILL get denied.
Most major retailers do offer revolving business credit. To get approved they will want to see that you do have established payment experiences, an established credit profile with at least one preferably two reporting agencies and positive credit scores with the reporting agencies that your credit is being reported.
Your major business credit scores are based on the timeframe you pay your bills.
So to have good scores you just need to make sure you pay your bills on time or early, the earlier the better.
So even with net 30 vendor terms, try to pay your bill as soon as you get it to have the highest possible scores.
Remember, many credit issuers have their computers approving files automatically. These computers are looking for high scores, so give them what they want.
You should have five payment experiences reported to start applying for revolving credit. Some starter revolving accounts include: Radio Shack, Lowes, Home Depot, Staples and Office Depot.
Most major stores do offer business credit even though they don’t promote that they do. So once you have followed the steps outlined here, you can start getting 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 then start getting approved for cash credit sources.
It’s also recommended that you have at least one account with a $10,000 high credit limit so your cash limits are as high as possible.