Hello it’s Ty Crandall with credit suite and in this short video
we’re going to talk a little bit more about building business credit so there are 4 crucial
steps to follow when you build business credit
if you follow these steps in order your typically get to get approved
for credit without a personal guarantee or credit check needed
if you don’t follow these steps in order your typically going to get denied
so pay close attention the first step is the credibility step,
to get approved for initial business credit the information you put on the
application
must be solid reflecting that you are very credible,
this is essential because if you had no business credit profiles score established
now
and that means all that’s going to be looked at to determine your approval
is the information you enter on that application, so
all info it must be solid it must reflect
that you have a legitimate business, for example don’t use a home address a PO
box or UPS address you need to use a real business
address if you don’t have one go to a company like Regus
R-E-G-U-S and get a virtual address instead you need to have a phone number, fax
number preferably
a toll free number this is what normal businesses have
now a days in a world where you typically doing business with people all
over the country
proper license is that you may need your entity such as a corporation or LLC needs to be
set up in
so does your bank account most importantly you need to make sure that
you have any EIN number because that’s what this credit profile built for,
business credit is credit is linked to your EIN not your social,
see you need to have EIN number to build the actual business credit profile
you also need to make sure that the business phone number you have is listed in 411
actually is the one most important things that you need,
because initial business credit approved or credit issuers
will give you credit, even if you have just the EIN and 411 number
as long as you look credible, and once you set-up credibly next
you need to start getting approved for starter vendor accounts.
Companies like Quill, Uline monopolize your market place
are great places to start building business credit,
because though actually give you credit if you have none right now,
now be aware some of these vendors like Quill will want you to sometimes placed 2 or
3
orders for approval if you apply leave your social
off the application and they don’t see
any credit established already them sometimes they might make you place 2 or 3 orders to
actually get
approved and again don’t put your social
on the application if you put your social security number on the
application they’re going to pull your personal credit
and you’re going to personally guarantee the actual
accounts that you getting, you don’t want that you want to build a credit profile linked
to your EIN, so your
EIN credit can stand on its own to get more and more credit in order to do this
and avoid the liability avoid the guarantee you need to follow these steps
start with the starter vendors leader leave your social off even if you have to place to
reviewers before they give you the actual credit,
and after you have 5 of these types of accounts reporting you can move on to revolving
store credit accounts
Amazon, Best Buy, Dell, BP, Walmart most retailers
offer no personal guarantee business credit cards
but they will not approve you unless you have initial credit
establish so you’ve got to have a credit profile scoring trade lines reporting
to get these kind of accounts that’s why it’s so crucial
that you get those vendor accounts, because once you have 5 of those
vendor accounts reporting
then they’ll see the credit profile they’ll see the credit score,
they’ll see the trade lines then and only then are you able to move in
and start getting store credit card accounts and with 10
total accounts including vendor including business credit cards then you can move
in to start getting cash credit cards, these are Visa, Master Card the most common
and easiest to be source to get approved for an about 4 to 6 months
total time, you can start getting this kind of accounts and a lot of them issued by your bank
um even company such as Home Depot and you can usually secure limits of 5 to
$10,000
on these types of business credit accounts, so I hope you enjoyed this short video on
building business credit, if so like the video subscribe to our channel
on our channel we have our long videos they’ll give you
much more details on exactly how you could build
your business credit, also make sure you click on this video to grab your free
guide
that free guide is essential in helping outlines steps
a building your business credit, again this is Ty Crandall look forward seeing you on my next
video.