How to start getting business credit
Posted On June 1, 2021
A supplier line of credit is when a company (supplier) extends a line of credit to its business in terms of “15, 30, 60 or 90 days net”. This means that you can purchase your products or services up to a maximum dollar amount and you have 15, 30, 60 or 90 days to pay the invoice in full. So if you are set up on Net 30 terms and you were to buy $ 300 worth of goods today, then that $ 300 is due within the next 30 days.
You can get products and services for your business needs and defer payment for 30 days, thus facilitating cash flow. And some vendors will approve your business for Net 30 payment terms after verification of just an EIN number and a 411 list.
Always apply first without using your SSN. Some providers will ask for it, and some will even tell you over the phone that they need to have it, but send it without first. Many don’t even know that they can get approved without it.
Most credit issuers will approve you without your SSN if your EIN credit is strong enough. If your EIN credit is not good enough, they may reject you and then ask for your SSN. No matter what ANY credit representative tells you, credit CAN be earned based solely on your EIN.
You should start a business credit profile and get a score with the initial providers. Start-up providers are the ones who will give you start-up credit even if you don’t have credit, score, or business line right now. Most stores like Staples will NOT give you initial credit, so don’t even try to apply.
Most stores will NOT approve a business owner for business credit unless the owner has an established profile and credit score, just like in the consumer world. Vendor accounts must first be used to establish a profile and score, and then store credit can be obtained. It typically only takes 90 days or less to establish a score and profile with business lines.
Get approved for Visa, MasterCard, Discover and AMEX cards with limits of $ 5,000 to $ 10,000 once you have established 10 payment experiences. Dell is known for issuing higher limits, so apply only after getting approved for other revolving store cards. Limits equal to the highest store credit card on the report.
Continue to use and increase your credit to gain access to even more business cash credit for your business.