Now that you have started your business, you are in a great position to start working on business credit.
Four goes to creditors that startups can easily use to establish credit and help you to position for the bigger opportunities get, even if you don’t use it.
Generate a paydex score in order to be able to open up even more money to be able to open up more accounts.
Don & Bradstreet can then report positive credit on your business, and you can go out there and get larger lines.
What if you were able to build that business credit and not have to tap into your personal credit and keep everything separate. That’s the idea here. We want to keep your business separate on your personal situation.
We share with you how to go out there and start building business credit without using your own personal credit. There are certain vendors out there that’s going to allow you to do that. Maybe they’ll provide you with a net 30 account, which basically means that they’re gonna provide you with business credit for a 30 day time frame. And if you spend, let’s say, 1000 bucks with that particular vendor, you need to pay off the entire $1000.
I’m gonna share with you exactly how you can start getting access to it, to something called business credit.
And if you haven’t had a chance to check out my previous video on the four steps you need in order to generate a payback score in order to start building business credit. A simple step by step process that you can start today in order to start generating business credit.
A FICO score is your credit score for your personal credit score.
Part of being financially stable is having access to capital. Start building business credit without using your own personal credit.
There are vendors out there that will allow you to have a net 30 account, which means a vendor gives you business credit for a 30-day time frame. If you spend 1000 bucks with that particular vendor, you’ll need to pay off the entire $1000 by the end of the 30 days.
Another account type is net 55 offered by Amazon. I share what you feel, maybe 5 vendors, I believe, in that particular video which will allow you to start generating business credit without even running your personal credit right now. Some of those vendors were short seat.
Office Depot
Uline
Granger
Although these vendors seem to be easier to access here’s the issue, you may not need to use this type of vendor. And you haven’t used the account It becomes difficult to purchase something through these companies.
So, what needs to happen is you should buy something that you are comfortable with and use the card anyway.
Keep your eye on the ball, the reality is you are successfully building business credit. Another option is a personal guaranteed loan which usually ends up being credit you want to have.
Don’t forget your credit score, none of this is possible without good credit. No matter where you start, whether you personally guarantee loans or you don’t, eventually you’re not going to have to guarantee anything.
When you have a good credit score you apply for commercial vendors like:
Lowe’s
Home Depot
Quick Trip
Capital One
Shell Gas
It’s really easy to get those accounts if you have a minimum of 580 credit score, you can get a Smart Capital One Card.
The shutter town, I think you needed a minimum of a 620-credit score. And the same thing with laurels. And Home Depot, I think laurels was a 620 and Home Depot was like a 640, or something like that.
If you are seriously looking to build business credit you need good personal credit first, or at least decent personal credit. If you don’t have good credit, try using accounts like Uline and Office Depot and start building business credit.
Your credit could begin to look pretty good when you generate a quick $15,000 in fresh business credit.
This is how it could go.
Capital One – $2000
Home depot $3000
Quick Trip – $5000
You just landed business credit of $10,000. Practice paying these accounts on time without missing any payments for 6 months. Your goal is to then get your paydex score by visiting Dun & Bradstreet.
Now, here’s a deal with business credit when. Looking to get business credit, the chances of you getting larger lines quicker is going to be much easier when you have that paydex score.
With the personal guarantee they will always be looking at the personal income you’re bringing in and your personal FICO. So position yourself so that your FICO score is not horrible and your personal income is showing up, then guess what? You build your paydex score up and you have good business credit, and you are basing the amount of money that you need for your business off of what your business Is actually bringing in, before you know it you’ll be getting millions of dollars, or even hundreds of thousands of dollars.
