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BUSINESS
CREDIT 101

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BUSINESS CREDIT 101

Establishing Your Business as A Legitimate Business

  1. Register your business as an LLC or Corp with the secretary of state’s office. (Do Not use your home address or PO Box a virtual mailbox is a great option if you need an address for your business but only have a home address).
  2. Get Your EIN.
  3. Get Your Business Telephone Number. When applying for business tradelines most companies will not accept you if you don’t have a real business number so no google voice numbers. You can use freedom voice which is a fairly priced business platform that I’ve personally used.
  4. Professional Business Email Address
  5. Make sure that all your information matches up across the board with the secretary of state.
  6. Get Your Duns Number
  7. Get Your Business Bank Account. Great Online Choices are BlueVine and Novo.
  8. Get yourself A professional website.

Verification

When Credit companies begin to verify your account for acceptance they will verify with these platforms.

Establishing Tradelines to Build Credit

1. Open Net 30 Accounts
2. The Importance of Nav ( Not only does it monitor your credit if you upgrade to the business boost it reports to all three business credit bureaus)

    • Uline
    • Grainger
    • Quill
    • Strategic Network Solutions
    • Shirtsy
    • The CEO Creative
    • The T shirt Club
    • Wise Business Plan

(There are also net 10 and net 7 accounts. These are just the days of the terms on the net account. So if it’s a net 30 you have 30 days to pay that invoice off.)

You want to open these accounts so that they will begin to report to the business credit bureaus which are Dun & Bradstreet (D&B) They base they score on a system called Paydex which is 0-100 points. You want to keep your paydex score to at least 80  also Equifax and Experian.

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Author: BOCI