For the entrepreneur, it always starts with a world of questions. Trying to figure out all the moving parts can be a challenge in itself. We’d like to narrow down your search and understanding of how to establish your business credit. Here are several starter vendor tradelines that will help you establish your business credit profile, obtain an 80+ paydex score, and lead you into tier 2 type of business credit. With the ultimate aim being funding your company as the goal. You have to be sure not to ignore the abilities that vendors provide. Instead of using cash reserves to pay for say… An office desk or supplies, paper, pens, etc. All things needed to run just about any business. These vendors often provide Net 30 accounts (entire amount has to be paid back in 30 days after the order). They can prove to be useful is you properly map out your company needs.
NAV.COM by Nav Technology
This is by far the place that every start-up and growing business should start your credit journey. This is the credit monitoring service for business! They will pull all of your business credit reports and put them in one place. They also provide credit monitoring of your personal score which can be utilized to give a view for how much you can potentially qualify for if you decide to be a personal guarantor (PG) for things like business credit cards and equipment. They also provide a gage for your businesses ability to qualify for SBA loans and other loan products. Of course they offer promotional products, but I think you’ll find the analytics helpful for watching your monthly revenue, to introducing you to some alternative financing options. Oh, and I forgot to mention they report your payments to the business credit bureaus when you sign up for their Business Loan Builder for $49.99. They report to the major business bureaus Dun & Bradstreet, Equifax Business, and Experian Business.
Shirtsy is the perfect place to start with the company work attire or for the start-up T-Shirt brand. They provide On demand custom apparel for men and women. Customize your hoodies, cups, key chains, gift bags, and yes even your COVID mask. They are ideal for any start-up or growing business that wants to cut down on their up front cost and and utilize their net 30 terms to get things going. They report to D&B, Experian, Equifax, CreditSafe, NACM, and SBFE. So this 1 company covers a LOT of ground with establishing your business credit. The program requires no personal guarantor (PG) so it won’t effect your personal credit and will only report to your business credit. Simply pay a $90.00 application fee and this will secure your approval for their credit program.
The ideal starter kit for office supplies. Crown Office Supplies has a Net 30 program much like the others in this list that requires a $90.00. No PG yet they will request your personal information upon sign up to identify the person signing on behalf of the business. There will not be a hard inquiry on your credit reports nor will this account end up on your personal credit report in the event of default. Crown is great for home offices, school supplies, and some custom items. My suggestion is to be moderate and utilize them as needed.
In need of Graphic Design? You may want to have some promotional material printed (Side eye from the digital world ) How about home & office cleaning supplies, or even web development. Of course, you can simply realize the benefit’s of the tradeline that reports to all the major business bureaus Dun 7 Bradstreet, Equifax Business, and Experian Business. Simply for an annual membership fee of $89.00 dollars you can establish this account and leverage it for future Lines Of Credit (LOC).
The solution for all of your phone number needs for your company. If your home based on an e-commerce store this is ideal for any company that needs to establish an 800 number and local number for there business. Global Voice Direct will provide these things and much more. From VIOP calls to extension lines for each member of your staff. Here is where you go to get it going while being able to defer the cost for Net 30 account. They report to Equifax Business and Credit Safe Business credit bureaus. There provide monthly plans and require a membership fee but do no require a PG.
ALL THINGS CONSIDERED
The establishment of your first 5 Business tradelines are critical to get the first stage of your business credit file created and start putting your business in the position to having borrowing power for the next phase including fuel cards, lines of credit and retail credit with companies like Staples, Home Depot, Office Max, Wireless services etc. Be mindful that there are thousands of companies that provide different forms of business credit but not all; in fact most of them don’t actually report to the business credit bureaus. We will be writing more about this topic of business credit building as well as doing reviews on the latest of financial products for your business with full explanations of a detailed breakdown of what you need to completely establish your start-up to growing your enterprise by being put it in the best fundable position possible.