Establishing initial business credit through trade vendors
- Start business credit with trade vendors: This is a method of obtaining lines of business credit using vendors who are willing to extend credit to new businesses. Cash flow, credit profile, and collateral are not necessary for approval for this business credit. For this to be effective, you must borrow from trade vendors that would report the account to the business credit reporting bureau.
Here are the two criteria to look for when choosing a business vendor;
o The vendor needs to report the business credit reporting agencies ( Experian, Equifax, and Dun & Bradstreet).
o The vendor must be able to extend the business credit needed without a credit a personal report.
o Through our partner, Credit Suite, we’re able to connect you with a group of vendors willing to extend these lines of business credit. The vendors gain by winning your business. You gain by starting a business credit profile with an initial investment out of your pocket.
- Using your personal credit profile: This is a method, where you use your personal credit and personal guarantee to get accounts that report to the business credit reporting bureaus. With this method, you can get over $100,000 in business credit lines that report to your business credit file. This mixes the use of vendor credit with other B2B providers who require a guarantor using your personal credit.
ALWAYS BUILD BUSINESS CREDIT BASED ON THE COMPANY’S EIN, NOT YOUR SSN
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COMPANY FORMATION, INC.
109 EAST 17TH STREET
CHEYENNE WY 82001