- Establish a business address, separate phone number and professional email address: Use this same information every single time you complete an application for business credit.
- Register your business: Begin by formally establishing your business as a legal entity, such as a corporation or LLC. This step is important to separate your personal and business finances. Contact your state
- Obtain an EIN: Apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) www.irs.gov. This is a FREE service. This unique identifier will be used to track your business's financial activities and is necessary for building credit.
- Open a business bank account: Open a dedicated bank account for your business. Use this account for all business-related transactions, including receiving payments and paying expenses. Maintaining separate accounts helps establish a clear financial record for your business. Credit Unions are the best banks to consider when opening up a business bank account.
- Establish trade lines: Start building credit by establishing trade lines with vendors, suppliers, and service providers who offer credit to businesses. Make timely payments for the products or services you receive, as this demonstrates your creditworthiness.
In addition, make sure to open your business credit reporting company accounts so that you can check your business credit reports. The 3 main agencies are www.dnb.com, Experian Small Business, and Equifax Commercial.
There are 4 tiers to consider when starting to establish business tradelines. Here are a few tradelines to get started:
TIER 1 NET 30 VENDORS
JJ Gold offers a wide range of handmade jewelry, hair and beauty products. (I personally love their candles)
Go to=> https://tinyurl.com/jjgoldbiz
- At least 90 days in business,
- $99.00 yearly membership fee
- Receive a $500- $1,000 Net 30 Account
- Reports to: Dun & Bradstreet and Equifax
- *Select the ‘Net Terms’ tab under the ‘My Account’ tab once logged in.
Uline is a packaging and shipping company, provides up to $1,000 in instant credits to its new business customers.
Go to=> https://www.uline.com
- Requirements: none
- Receive a $500 Net 30 Account
- *With established business credit they offer Net 30 Account
- Reports: to Dun & Bradstreet
BP Gas card perfect for mid-sized to larger fleets that need the added convenience of fueling anywhere Mastercard® is accepted.
Go to=> https://www.bpbusinesssolutions.com/mastercard-details/
- No personal credit
- Reports to: D&B, Experian and Equifax
TIER 2 NET 30 TRADELINE
NAV Business Boost Plan gives you access to your business credit reports as well as powerful business credit building tools while simultaneously building your business credit through consistent payments.
Go to=> https://tinyurl.com/navbizcredit
- Nav Business Boost program is $49/month
- Reports your monthly plan payments as a positive tradeline
- Full business & personal credit reports
- Follow up to 5 businesses' credit reports
- Reports to: Experian and Equifax
Summa Office Supplies is the ultimate source for all of your office product needs.
Go to=> https://summaofficesupplies.com/apply
Tier 2 account offers their full list of products but might ask for a PG
To Qualify:
- Min $75.00 purchase for the first order only to report
- Entity in good standing with Secretary of State
- EIN number with IRS
- Business address - matching everywhere.
- D&B number
- Business License - if applicable/Business Bank account
You may qualify for Tier 1 account if new in business and not enough business credit history with a minimum order of $80 of downloadable products
- You may qualify for Tier 2 account if the business has 6 months or more of credit reporting with a minimum order of $300 worth of office supplies upon checkout.
- Reports to: Equifax Tier 2 account reports to D&B
These are only a few tradelines to help you jumpstart your journey into establishing business credit.
6. Monitor and maintain your credit: Regularly monitor your business credit report to ensure accuracy and address any discrepancies promptly. Pay your bills on time, manage your debt responsibly, and maintain a good credit utilization ratio to strengthen your business credit profile over time.
Remember, building business credit is a gradual process, and it's important to demonstrate financial responsibility and reliability to establish a strong credit history.