Starter Vendors for Business Credit
Four Great Starter Vendors for Business Credit
Vendor Accounts
- Vendor accounts are the foundation of your ideal business credit profile.
- Starting with vendor credit is a tried and true method for establishing business credit.
- Vendors provide immediate access to high-quality products that you can utilize for your company, as well as excellent customer service experts to assist you along the process.
- Vendor accounts will change the way your company operates.
Understanding Vendor Accounts
- Vendor accounts are credit lines that allow you to buy products directly from the firm that sells them.
- You will have immediate access to the funds required to run your business and repay your line of credit.
- If you want to create business credit, you can report to business credit bureaus without providing a personal guarantee.
- If you want to boost your purchasing power, avoid reporting to corporate credit bureaus and using a personal guarantee.
- Use a personal guarantee to report to business credit bureaus if you want to receive better terms and limits while still growing your credit.
- Finally, if you want better conditions and limits for specialized usage with high returns, consider using a personal guarantee but not reporting to bureaus.
Power
The Power of Business Credit
- Your business credit reports are separate from your personal credit history.
- Unless there is a personal guarantee requirement that you fail to meet, applying for company credit will have no effect on your personal credit.
- Personal guarantees are not required to be accepted for company credit cards.
- You'll gain access to higher limits, better rates, and more business value.
Building a Business Credit Profile
- Business credit does not grow overnight if you simply own a business and have an EIN; it must be purposefully built.
- Building corporate credit is more difficult than building personal credit.
- Building business credit begins with starter vendors.
- No matter how long you've been in business, you can receive approval for financing quickly.
- Use your credit after receiving permission from a starter vendor by paying at least $50.
- The merchant then reports that credit to the credit reporting agencies.
- Before acquiring large limits or credit cards without a personal guarantee, you must first build trust with your vendors.
- You will quickly gain this trust if you utilize your vendor credit accounts appropriately and pay them back on time.
Things You Need to Know About Business Credit
- Not every merchant will approve you just because you have an excellent credit history and score.
- Some vendors have a time in business requirement.
- To acquire the financing that does not require a personal guarantee, you may need to be in business for one to three years.
- Some suppliers may demand you to satisfy particular revenue standards, however many beginner vendors will approve you without these limitations.
- Before you can receive a Visa or MasterCard, you must have acceptable credit.
- Building business credit takes time and planning.
- The most difficult component is obtaining initial credit.
- Over 93 percent of trade vendors who give credit do not report to business credit agencies, therefore you must find funding sources who will.
Starter
Starter Vendor Accounts
- Starter vendor credit accounts are credit lines that you can use to buy products directly from the firm that offers them.
- Vendors report credit even if your business does not have an established credit history.
- Rather than revolving terms, these vendors often offer net terms.
Starter Vendor Account Reporting Process
- To get your business credit profile off to a good start, you must be approved for vendor accounts that report to business CRAs.
- Once accepted, you can utilize the credit, repay it, and the credit is reported to Dun & Bradstreet, Experian, or Equifax.
- You now have tradelines, an established credit profile, and an established credit score after reporting.
- You can then apply for extra credit under your EIN using your freshly formed business credit profile and score.
- Because vendor credit is not provided by a bank, you can leave your SSN off the application.
- You should only provide your SSN for verification purposes, and make certain that you are not agreeing to a personal guarantee or a personal credit check.
- The creditor then pulls your EIN credit, sees a strong profile and score, and can authorize you for additional credit.
- Keep in mind that credit from a bank will demand your SSN as part of a federal anti-money laundering requirement.
Starter Vendor Account Benefits
- Vendor credit is a critical stage in establishing business credit.
- Without a company credit history, the only sort of credit you can qualify for is vendor credit.
- The rest of your credit profile must be built.
- Establishing credit has been shown to aid in obtaining lender approvals.
- To get to Tier 2, you must have three or more vendor accounts.
- Those accounts will report in 30 to 90 days.
- Do not apply for Tier 2 credit until you have three or more accounts.
Grainger
- Grainger is a company that sells hardware, power tools, pumps, and fleet maintenance.
- They provide credit information to Dun & Bradstreet.
- If a company does not have established credit, they may want to see additional documents such as accounts payable, income statements, and balance sheets in addition to their standard prerequisites.
- To qualify, your business must have:
- An entity in good standing with the Secretary of State
- EIN with the IRS
- Business address
- DUNS number
- Business license
- Business bank account
- A business that has been registered with the Secretary of State (SOS) for at least 60 days.
Uline
- Uline is a company that sells shipping, packing, and industrial goods.
- They are accountable to Dun & Bradstreet and Experian.
- Before you can begin building business credit with them, you must first open an account with them.
- Net 30 periods are available.
- To qualify, your business must have:
- An entity in good standing with the Secretary of State
- EIN with the IRS
- Business address
- DUNS number
- Business license
- Business bank account
- Business phone number
- 411 directory
- A D&B Paydex score of at least 80.
Marathon
- Marathon Petroleum Company sells transportation fuels, asphalt, and speciality products in the United States.
- Their product line is designed to support commercial, industrial, and retail ventures.
- This card provides information to Dun & Bradstreet and Experian.
- Before applying for several accounts with WEX Fleet cards, provide enough time between applications so that they do not suspect your account of fraud.
- To qualify, your business must have:
- An entity in good standing with the Secretary of State
- EIN with the IRS
- Business address
- DUNS number
- Business license
- Business bank account
- Business phone number
- 411 directory
- Your Social Security Number is required for informative purposes only.
Supply Works
- Supply Works is a division of Home Depot that specializes in integrated facility maintenance products.
- They are Experian-reporting and provide Net 30 terms.
- To qualify, your business must have:
- An entity in good standing with the Secretary of State
- EIN with the IRS
- Business address
- DUNS number
- Business license
- Business bank account
- Trade/bank references
WEX Cards
- WEX provides universal fleet cards, heavy truck cards, and commercial fleet cards that are universally accepted.
- Their cards provide features that benefit small businesses, including a rewards program.
- Before applying for several accounts with WEX Fleet Cards, make sure to provide adequate time between applications so that your account is not flagged as fraudulent.
- A $500 deposit is required for a personal guarantee if you are not approved based on your business credit history or have been in business for at least a year.
- The terms available include:
- Net 15 (Wex Fleet Card)
- Net 22 (Wex Fleet Card)
- Revolving credit (Wex FlexCard)
- To qualify, your business must have:
- An entity in good standing with the Secretary of State
- EIN with the IRS
- Business address
- DUNS number
- Business license
- Business bank account
- Business phone number
- 411 directory
