Summary

The article outlines a five-step process for building and establishing business credit to secure funding and grow a business.

Abstract

The provided content emphasizes the critical role of business credit in securing funding and resources for business growth. It advises business owners to protect their personal credit, obtain an LLC and EIN, and set up separate business communication channels. The article details the importance of registering with business credit bureaus like Dun & Bradstreet, establishing trade lines, and leveraging vendor credit. It also suggests transitioning to store and cash credit cards from banks to further build credit without affecting personal credit scores. The author stresses that a good Paydex score, similar to a FICO score, can be achieved within months, and regular credit report checks are recommended.

Opinions

The author believes that access to business credit is crucial for accelerating growth and alleviating financial pressure on business owners.
It is implied that many business owners are limited by a lack of funding, which can hinder their ability to realize their full potential and may lead to business failure.
The author suggests that establishing business credit is a safer and more strategic approach than relying solely on personal finances or out-of-pocket funding.
The article conveys that setting up a business correctly from the start, with separate business emails and phone numbers, is a small investment that can prevent future complications.
The author recommends specific vendors like Uline, Grainger, and Quill for establishing trade lines and leveraging net30, net60, and net90 payment plans.
It is the author's opinion that obtaining a Dun & Bradstreet number is a key step in building business credit, and they encourage readers to update their business address from a home address to a business address promptly.
The author advocates for the use of business credit cards from major banks and retailers, ensuring that purchases made with these cards do not impact personal credit scores.
Regular monitoring of business credit reports, specifically the Paydex score, is advised by the author to maintain a healthy credit profile.
The author's perspective is that with diligent credit-building practices, business owners can quickly achieve a favorable Paydex score and gain access to better credit opportunities.

The Right Way To Get Millions In Funding For Your Business.

& Change Your Life Forever.

Building business credit is super important when it comes to getting the funding you may need to build your business.

Establishing business credit is important and very necessary if you are a business owner. Access to cash and credit when running a business could fundamentally change and improve everything within your business. ‘

The main reason business credit is important is because it can protect you from your personal credit score, you can get better credit, and you can receive faster funding for your business.

Credit can be used as leverage in so many situations when it comes to building a business. It can accelerate the amount of growth your business can experience in the first five years and relieve the pressure off of you for funding everything out of pocket yourself

I know what it feels like to have these big dreams and aspirations, and not have the correct funding to fund these dreams. I actually see a lot of business owners limited by money, and unable to produce their best work due to the fact that they are unable to afford better production, advertising, better staff, better equipment, etc. They end up selling themselves short and even worse going out of business because they lack the proper resources to fulfill their vision.

Being a business owner is like being a 5-year-old kid and playing pretend with your siblings and creating your own magical world inside of a huge bedroom. In contrast, lacking the ability to fund your business is like a single child with no siblings trying to play pretend with a stuffed animal inside of their closet. Having no resources for funding limits you, your imagination, and possibilities.

Today, I am going to cover how to build and establish your business credit in five easy steps.

It is extremely dangerous to miss out on thousands and thousands of dollars, so start as soon as you can when it comes to building business credit. The ability to have the capital needed to do exactly what you want to do is vital when it comes to starting your business. It is just as important whenever things in your business aren’t following suit either, your business credit can help leverage out of a lot of situations. Now that I have repeated that point enough times, let's get to the juice.

To start, when trying to build your business credit you only have 3 main different bureaus. You have Experian business, Equifax business, and Dun and Bradstreet, also known as DNB.

1. The initial steps.

This should include setting up your business by obtaining an LLC, EIN, an actual business email, a business checking account, and a business phone number.

Disclaimer: It is best to obtain an actual business email that is separate from your personal email and includes your business name in the email. It is also important to acquire a business phone number separate from your personal number. These are both free and cheap transitions and will save you a lot of heartache in the future.

2. D&B.

After you follow these steps and go to www.dnb.com and you'll be able to register for a free Dun & Bradstreet number. After you apply, they will mail you a code to your business address. You should only use your home address if you have to but make sure to update it later.

Note: If you want to earn free ebook on Credit Building, learn more here about how to really fix your credit.

3. Establish Tradelines.

Once you receive that code in the mail you can go to the Dun and Bradstreet website and register your business and start establishing trade lines on your credit.

4. To establish tradelines begin by getting vendor credit.

There are businesses that lend to other businesses and report purchases to business credit bureaus. Three companies that can be recommended include Uline, Grainger, and Quill. You have to spend at least $50 for them to start offering you net30s, net60s, and net 90s. These are basically plans where you can get items with 0$ upfront, and pay the amount later in either 30 days, 60 days, or 90 days. This is the leverage that you can take advantage of by having business credit.

5. Next is establishing your store credit.

There are plenty of places that offer business credit cards such as Amazon, Walmart, various gas stations, etc. Most of these companies offer fleet credit cards to business owners. You can receive store credit at several different places such as Walmart, Costco, and Dell.

Afterward, you can make the transition to cash business credit cards you can receive at banks such as:

Citibank

Chase

American Express

Capital One

Those are the 5 starting steps to take to start establishing credit in your business!

Making purchases at these places with these cards will never affect your personal credit score. In all cases, they will only report information to your business credit bureau.

It will run you about 20$ to check your credit on DNB but I advise that you try to check your credit report 2–3x times a year.

Please keep in mind that Dun & Bradstreet has what you call a Paydex score which is equivalent to a FICO score. Any Paydex score over 80 is a pretty good Paydex score and you can actually acquire this in a matter of a few months of working on your credit.

If you want to receive more info on business, take a look at my publication and check out our weekly articles.

Thank You For Reading!

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