Five vendors who can help you build business credit and how to get approved with no personal credit check or guarantee. This is how business credit is built having an EIN doesn’t mean you have established credit. If you go to a bank to try and get cash credit using your EIN with no credit established you’ll always be denied guaranteed! That is unless you did have good personal credit and used it to get approved while supplying your personal guarantee. Lots of people fail at building business credit because they try banks first and are turned down. This is frustrating but don’t give up. Let’s talk about building business credit the right way. You can’t start with the roof, you must start with the foundation first and build up. You can’t start with store or cash credit from your bank. If you do you’ll be denied 100 percent of the time. First, you must build trade lines that report. That’s also known as vendor credit. Then you’ll have an established credit profile and then you’ll get a business credit score. And with an established business credit profile and score you can start getting revolving store in cash credit. What is vendor credit? These trade lines are creditors who will give you initial credit when you have none now. They are vendors who can give you basic business supplies such as coffee, shipping boxes, outdoor work wear, ink and toner or office furniture. They typically offer terms such as net 30 instead of revolving. So if you are approved for 1,000 dollars in vendor credit and use all of it you must pay that money back in a set term such as within 30 days on a net 30 account. Net 30 accounts must be paid in full within 30 days, and net 60 accounts must be paid in full within 60 days. Unlike with revolving accounts, you have a set time when you must pay back what you borrowed or the credit you used. To start your business credit profile the right way. You need to be approved for vendor accounts that report to the business credit reporting agencies. Once that’s done then you can then use the credit. Payback what you used and the account is reported to Dun and Bradstreet, Experian, and Equifax. Once reported then you have trade lines an established credit profile and an established credit score. Using a newly established business credit profile and score, you can then get approval for store credit and then eventually, you can get store credit without needing to supply your Social Security Number or personal guarantee. This is possible because now your EIN credit profile is established it can stand on its own. So if you leave your Social Security Number off the application the credit issuer then pulls your EIN credit sees a solid profile and score and can then approve you for your real revolving credit. For building business credit this is what you need to know. Not all retailers will approve you just because of your credit profile and score some sources like Home Depot or RadioShack also have a time and business requirement. You may need to be in business one to three years to get no personal guarantee credit. Some sources like Home Depot might require that you meet certain revenue requirements for no personal guarantee credit too. But most retailers will approve you without these requirements. This is the process. You won’t get a Visa or MasterCard right away. Instead, you need to start with trade lines also known as vendor credit. You need to have credit to get more credit and you need 10 or more trade lines to get the big payoff. Getting initial credit is the hardest part. Over 97 percent of trade vendors who issue credit don’t report it to the business reporting agencies. As a result, you must find sources which actually report. There are many vendor credit benefits vendor credit is an important step in building business credit. Vendor credit is easier to get than store or fleet credit. It can lead to store and fleet credit. Establishing credit will lead to lenders approving you. This process is proven to work. Vendor credit terms are typically net 15 to net 60. This means you must pay off what you charge within that time period. You want vendors who will report to the big credit reporting bureaus just like for all credit. Be responsible and pay on time. But don’t do this. Now that you’re uncovering the secret formula for business credit building let’s revisit what not to do. Don’t apply for store credit first you’ll be denied. Don’t start with cash or bank credit first you’ll be denied and don’t put your Social Security Number on the the application to start your business credit building because they’ll pull your personal credit and require a personal guarantee. Start with vendor accounts. They are the ones which will give you initial credit even if you have no credit no score or no trade lines now. Other vendors like Staples won’t do this. So don’t even try them. Here are five companies which provide vendor credit and report to the credit reporting bureaus. They are Uline Shipping Supplies, Quill Office Supplies, Grainger Industrial Supply, Monopolize your Marketplace and the Wells Fargo business secured credit card. Uline Shipping Supplies, sell shipping, packing and industrial supplies. They report to Dun and Bradstreet. You must have a DUNS number before starting with them. They will ask for two trade references and a bank reference. You usually need for an order to be fifty dollars or more before they’ll report it. Your first few orders might need to be prepaid initially so your company can get approved for net 30 terms. Here’s how to apply with them add an item to your shopping cart, go to checkout, select to open an account, select to be invoiced, you can visit them online at www.uline.com. Quill office supply sells office packaging, and cleaning supplies. They also sell toner, office furniture and even coffee and snacks. They report to Dun and Bradstreet every quarter to apply. You must have a Dun and Bradstreet Paydex Score. They will also check you on Experian. You must place your initial order first unless you’re Dun and Bradstreet score is already established. In general, they will put you on a 90 day prepayment schedule. If you order items each month for three months they will typically approve you for a net 30 account. Here’s how to apply, add an item to your shopping cart. Go to checkout, select to open an account and select to be invoiced. You can visit them online at www.quill.com. Grainger industrial supply sells hardware, power tools, pumps and more. They also do fleet maintenance. To qualify you need the following a business license and EIN number and a DUNS number from Dun and Bradstreet. For less than 1,000 dollars credit they will approve nearly anyone with a business license for over 1,000 dollars credit. They want to see trade and bank references fax them your application or apply over the phone. You can visit them online at www.grainger.com. Monopolize your marketplace sells the everything you need to know about marketing and business, ten audio C.D. set. They also offer marketing solutions like advertising. They report to Experian. This is a true starter account. Upon checkout choose the four equal payments of 59.99 option. The first charge will take place in 30 days. You need a bank account and Employer Identification Number or EIN and a deliverable address. Wait 30 to 60 days for this vendor’s reporting to show on your business credit reports. You can visit them online at www.mymonline.com. The Wells Fargo business secured credit card offers purchase protection. The card has a 25 dollar annual fee. They report to business Experian. You have a 21 day grace period to pay. You can get a credit line of 500 dollars to 25,000 dollars. You must supply your personal Social Security number in addition to your EIN You must be a Wells Fargo online customer first. This offer is only open to American citizens or permanent residents of the United States. You can apply online, in a store or by phone. You can visit them online at www.wellsfargo.com/biz/business-credit/credit-cards/secure-card. Here’s a bonus sixth starter vendor strategic Network Solutions offers technology training and tech support. To qualify you need an EIN and to have your business entity squared away. That is you need to have set up your business with the IRS as a corporation, partnership LLC or the like. You can visit them online at stntsol.com. One alternative is unsecured business financing. You can use your assets as collateral. This can be personal assets like a 401k or business assets like equipment to you own outright. You can get 0% business credit cards with stated income no financials are required. You can get up to 150 thousand dollars. You need a credit score of 700 or better. Here are some more benefits of vendor credit. You must have five vendor accounts reporting to move on to store credit. It will take 30 to 90 days for those accounts to report at 60 days on average do not apply for store credit without having five accounts first. What about getting approved with no personal credit check or guarantee. You need vendor accounts to start a business credit profile and score. This is a total of five payment experiences reported to start getting revolving store credit. A payment experience is an account reported to a business credit reporting agency. So if you get approval with a vendor who reports to Dun & Bradstreet and Experian that counts as two payment experiences. If that account only reports to Dun & Bradstreet then that is just one payment experience. How about getting initial business credit. You need five payment experiences to start getting approval for revolving store credit cards using your EIN only for approval. These are credit cards at places like Best Buy, Lowe’s, Staples, Amazon, Dell, and Apple. You then need a total of 10 payment experiences to get approval for a cash credit like Visa and MasterCard type credit. To give that cash credit you also need to have one of those payment experiences have a 10,000 dollar limit or higher at least to start getting generous limits on the cash credit you secure. Do you know how to get a vendor to pull credit under your EIN? If you add your Social Security Number to your credit application the vendor will pull your personal credit and supplying your Social Security Number attaches a personal guarantee. Plus the vendor will pull your personal credit report. This also means an inquiry on your personal credit, and if there are too many inquiries your personal credit score will drop. There is no law requiring a Social Security Number be supplied on credit applications. There are however two federal laws which make it a felony to use any other number than a Social Security Number in a Social Security Number field. But you can legally leave that field blank the credit approval decision will then be based on the quality of your business credit reports and scores, and not on that of your consumer credit. How about secured credit for these cards. You need to provide a deposit. Your credit is generally the same as your deposit. These cards tend to not have very good rates or rewards. They will only report negative items on your personal credit reports. Therefore they are best for building credit when you have a poor credit score or are just getting started. So when it comes to using vendor credit to build business credit apply and get credit for your EIN start with vendor credit work with starter vendors who will report to Equifax, Experian, and/or Dun and Bradstreet always manage your credit responsibly, we can help. Contact us today to learn more about five vendors who can help you build business credit and how to get approved with no personal credit check or guarantee.