Hello it’s Ty Crandall and in this short video we’re going to talk about
how to build business credit so the first step of building business credit
is to set-up
and actual business and to do so, first you’re going to want to set-up
an entity in your state you could do this right on your Secretary of state website
the prices vary depending on the state that you live in you want to try this too
and LLC or a corporation that it LLC
or corporation with those you’re not personally liable for what happens in
your business
if you were to choose a partnership or sole proprietorship you
are personally liable for what happens in your business which is not something you
want to have happen,
next you want to go to irs.gov and get your EIN number, now your EIN
numbers free
never pay for EIN number from any company you could simply go to irs.gov
and get it for free. Once you have your entity and your EIN
next you can get your bank account set-up very important nowadays
a lot of lenders and credit issuers look at the date you set-up your bank account as
your company start date,
so make sure you get this done early on in the process. Once you’ve done this
next before you start applying you need to make sure that your business is set-up
credibly
you need to have a real business address or use a virtual address
from a place like Regus R-E-G-U-S
do not use PO box, do not use a home address that will get you denied,
you also want to make sure you have a business phone number preferably
toll-free number
the phone number should be listed with 411 and you can
also make sure you should make sure you have a fax number also, do not use a
home phone
do not use a mobile phone on your application for business credit or you
will get denied.
Make sure you have a professional website and a professional email address
that you’re going to be putting on the application and make sure you have any
required licensing
that you would need for your actual industry, once you’ve done this next you
want to get your business credit report you need to monitor
these new trade mines being put on your reports it is important part of business credit,
so you can get your credit reports from Dun & Bradstreet,
Experian and Equifax commercial we made it real easy for you to go to our website
www.creditsuite.com/reports
or go to the reporting agencies main websites to actually get copies of your
credit reports
if you go to this
link their were providing we’ve already worked at discounts for you on all 3
so you can get them all in one place where you can go directly to the company sites
and you only really need to get reports with Dun & Bradstreet, Experian, Equifax
isn’t that popular in the business credit world,
so get one or the other um or both whichever you prefer.
The next step is you want to start getting vendor credit accounts,
so you want to get your initial trade lines credit score and credit profile
with business reporting agencies by securing vendor
account, so what you need to do is you need to get these type of vendor
accounts
which are accounts with terms like net 30 and make sure that these accounts
reporting
to the business credit reporting agencies we just mentioned
so you want to get approved the sources who will give you credit even if you
have no credit
established right now, so you want to try companies like Uline and Quill
and a few others that are out there, you should have about 3 to 5
of these accounts set-up before you move to the next step.
The next step it to start getting store accounts once you have five accounts
reporting
that gives you trade lines, business credit report, business credit scores
the next thing you want to do is to start applying for store credit cards
for your business these are not net 30 accounts there revolving accounts.
Leave your Social security number off the application at this point
they’ll look at your EIN number since you have some credit to established
that alone can get you approved without needing a personal credit check or so
or personal guarantee, Amazon, Best Buy,
Dell and most other retail stores offer business credit account you can apply
for
again to apply you want to include your EIN and not your social.
Once you have 10 accounts reporting to the business agencies, start applying for cash
credit
Visa and MasterCard are common sources of cash business credit accounts with 5,
$10,000 higher limits,
discover doesn’t currently offer business credit account but American Express does
it, just takes a lot of establish credit to get approved with them
so make sure you try with these in MasterCard first, and that’ s exactly the
steps to build business credit, now I know this was
a very short video because I Just want to give you an overview but if you
subscribe to our YouTube channel
you’ll find our long videos that walk you through
each stage of the process so you could successfully build your business credit,
so make sure you like this video make sure you click to subscribe and also on
this video you’ll see
at least one link that you can usually click to get a free report, free guide
that will also help you
in building your business credit, again this is Ty Crandall thank you very much
for taking the time to check out this video on how to build business credit.