A business credit report can be started in much 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 starter cards in the business world are commonly called “provider credit.”
Net 30 terms are common with most vendor credit sources. 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 require you to buy their products, while others will not.
Some companies will ask you to pay for your first orders, others will not.
Some companies report your credit very quickly and quickly, others do not.
Be on the lookout for all of these things when you apply with providers.
Always apply first without using your SSN. Some providers will ask for it, and some will even tell you over the phone that they need to have it, but send it without first.
Most of the 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 ask for your SSN.
When your first Net 30 account reports your “business line” to Dun & Bradstreet, the DUNS system will automatically activate your file if it is not already there. This is also true for Experian and Equifax.
Some of the more popular vendor sources include: Uline, Laughlin & Associates, Quill Office Supplies, and Reliable Office Supplies.
Next, start creating revolving accounts …
You will need a total of five reported payment experiences to start earning revolving store credit.
Don’t apply for store credit with no checkout experience, no score, and no profile, or you will be denied.
Most major retailers offer revolving business credit. To get approved, they will want to see that you 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 reported to.
Your top business credit scores are based on how long you pay your bills.
So to get good scores, you just need to make sure you pay your bills on time or early, the sooner the better.
So even with 30 vendor net terms, try to pay your bill as soon as you get it for the highest possible scores.
Remember, many credit issuers have their computers automatically approving files. These computers go for high scores, so give them what they want.
You must have five reported payment experiences to begin applying for revolving credit. Some initial revolving accounts include: Radio Shack, Lowes, Home Depot, Staples, and Office Depot.
Most large stores offer business credit even though they don’t advertise it. So once you’ve 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 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 so that your cash limits are as high as possible.