Once you have an entity structure and obtained a Dun & Bradstreet number now it’s time to start building your business credit profile. One of the biggest mistakes made by business owners attempting to build instant business credit is applying for multiple vendor accounts.
While some may have a tendency to believe that the more the merrier is a sound strategy I tend to disagree. The reason is simply getting approved for vendor credit is one thing but what really matters is whether or not the vendor reports your payment history.
There are over 500,000 vendors extending credit to businesses, but less than 6,000 of them report to the business credit bureaus! So for real instant business credit that will build your profile requires that you choose the right vendors to apply with.
Secondly, there are vendors who do report your payment history but only on a quarterly or even yearly basis. Time is of the essence and you also have to make sure the vendor you apply with also reports your payment history on a monthly basis!
Here’s some credible sources:
Source 1
Quill
Quill sells office supplies, cleaning supplies, packing and shipping supplies, school supplies, printing supplies, and more. From filing and storage to hand held computers, Quill has a wide range of discounted top name brand products.
Quill offers a net 30 account and reports to Dun and Bradstreet. Best part is they report your payment history every 30 days. For small orders you can get approved with a listing on 411 directory and have a working website. New businesses can start out with smaller limits that will increase when you pay on time every month.
Source 2
National Entrepreneur Club
N.E.C. is a business credit community for entrepreneurs providing business credit training, tools, resources, videos, audios, news, and much more. N.E.C. has a wide range of discounted top name services.
N.E.C. offers a monthly membership account and reports to Dun and Bradstreet. Best part is they report your payment history every 30 days.
Source 3
Visa Business Platinum Card
Capital One by far provides the fastest response for business credit approval. (60 seconds) This card is perfect for new or established business owners who want to build business credit history.
Capital One Small Business offers a 0% introductory APR on purchases until 2010 as well as balance transfers. There’s no annual fee and credit line approvals can be up to $10k.
While you can obtain instant business credit for your business the process of building a business credit profile and score does take some time. As long as you continue to keep your credit lines active and maintain a good payment history with low balances (less than 30%) you can expect to see your credit lines increase over time.
As you continue to apply for more vendor accounts and establish new trade lines on your file the greater the opportunity your business has for getting approved for even larger credit lines.
Always keep in mind that trade credit opens the door to cash credit for your business.
Copyright (c) 2009 Marco Carbajo
About the Author
Marco Carbajo is a business credit specialist, author, speaker, and expert in the business credit industry. Would you like to learn more about how to start building business credit plus obtain unlimited financing for your business? Claim Marco’s popular FREE business credit seminar ($597 Value),available at:= http://www.businesscreditblogger.com
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