Starting your business credit journey can be exciting. It opens up possibilities for your business. Building a strong business credit profile will help you make your company successful in the long run.
Researching business credit takes time. Ask experts for help and make a plan. It will take patience, but the rewards are worth it. Aim high and use this journey to help your company grow and be successful.
What Are the First Steps?
To start, you need to do two things. Step 1 is to make sure that your business looks good and is set up the right way. This will help the people who give you money to trust that your business is real and separate from you.
To look good for funding, you need to do some things. Here is a short list of what you should do::
- Physical address where you can receive mail
- Toll free phone number listed in the 411 directories
- Incorporating as an S-corp, LLC, or corporation
- EIN (Employer Identification Number)
- Business bank account
- Proper licensing
- Business website
You need to build business credit reports. To do this, you have to get a D-U-N-S number from Dun & Bradstreet and list yourself with other business credit reporting agencies. This is like a scoreboard that helps vendors know if you make payments on time. Step 2 is setting up the scoreboard.
Tier 1 Business Credit Vendors
This is the step where you can start to create your business credit. To do this well, you have to pick the right vendors. It will be hard to get money if you don’t build a good business credit score. Look for vendors in Tier 1 or Starter Vendors, as they are sometimes called.
Some companies will help you build a business credit score. They can give you an account that reports to a credit agency so your score goes up. When your score goes up, you can get more accounts and even better deals with other companies.
What Makes a Vendor a Tier 1 Business Credit Vendor?
Some companies do not give out loans. They are stores that may offer to let customers pay for things in 30, 60, or 90 days. This is called net terms. They give you this much time to pay the full amount of money owed.
Net 30 credit is different from a credit card. There is no card. Companies give this type of credit without looking only at whether you have good credit. They will look at other things when deciding if they can trust you to pay them back.
The Importance of Reporting
It is hard to find vendors who will let you buy something and pay for it later (net 30 terms). To be a great vendor, they must also report when you make your payments on time to the credit reporting agencies. This is important if you want to build good business credit. Most vendors only report when you do not pay on time. Nine out of ten vendors do not report when you make your payments on time.
It is difficult to build business credit. You need to have good credit to get more credit. Starter vendors that report your payments can help you break the cycle, but it can be hard to find them by yourself.
List of Some Tier 1 Business Credit Vendors
Note: business credit vendor terms can and do change.
We only list vendors that can help you build your business credit profile. But also, these vendors offer good customer service and you can use them to buy office supplies or other things for your business. Building a business credit is not just an end goal but it could lead to other kinds of financing like a credit line or cash flow financing.
Vendor 1 – Grainger Industrial Supply
Grainger Industrial Supply is our first net 30 account. They sell hardware, power tools, pumps and more. Dun and Bradstreet and Equifax know about them. You do not need to give a personal guarantee in order to buy from them on credit. If your business does not have any credit yet, the company may ask for other information like how much money you owe or make and what you own.
They offer net 30 terms, and qualification requirements include:
- Being an entity in good standing with the applicable Secretary of State
- Being registered with the Secretary of State (SOS) for at least 60 days
- An EIN
- A business address that is consistent everywhere it is listed
- A D-U-N-S number
- All business licenses (if applicable)
- A business bank account
You do not have to buy anything to be part of this net 30 account. But it is better if you can show that you have paid at least $50 in the past. You can apply for this online or by calling on the phone.
Vendor 2 – Uline
Uline is our next net 30 account. They sell shipping and packing supplies. We often suggest trade credit with Uline. Even though they have products like Tier 3 vendors, it is easier for small businesses to get approved by them. Uline reports information to Dun & Bradstreet and Experian. Before you can get the net terms, you need to create an account with them first. They will offer a special net 30 terms for small business owners.
Their qualification requirements include:
- Being an entity in good standing with Secretary of State
- An EIN
- A business address (matching everywhere)
- D-U-N-S number
- Business bank account
- Business phone number listed in 411
- A D&B PAYDEX score of 80 or better (although if you meet the other requirements you may get approval anyway)
You need to create an account first if you want to pay later. Select Net 30 terms when you order something. The Credit Department will look at your account and decide if they can give you the option to pay later. They might ask you to pay for a few things first before they let you use Net 30 terms.
Vendor 3 – Home Depot Pro
We have a new account called Barnett. They sell things to help keep buildings in good condition. You don’t need to give permission for them to check your credit. They won’t accept fake addresses. This vendor will tell Experian how you pay your bill, and you must pay within 30 days.
Qualification requirements include:
- Being an entity in good standing with Secretary of State
- An EIN
- Business address (matching everywhere)
- D-U-N-S number
- Business license (if applicable)
- A business bank account
- Trade and/or bank references
To get approved, your small business must be open for a year and have other vendors who have been approved with credit limits of $5,000 or more. You can apply online by filling out the credit application form and sending it to ProTrades_CustomerCare@homedepot.com. You can also fax your application to 800.436.9192 or apply over the phone.
Vendor 4 – Pilot Flying J
We now have Pilot Flying J as a vendor. This is not an account where you pay later. You will get points for every gallon of fuel you buy with special offers giving even more points. With the Axle Fuel Card, you can be approved in 24 hours. You can also get credit, help with truck maintenance, or money to help with your trucking business. There are 500 locations that have fast-charging EV stations too!
Their qualification requirements include:
- Being an entity in good standing with Secretary of State
- An EIN
- Business address (matching everywhere)
- D-U-N-S number
- Business license (if applicable)
- A business bank account
- Your business’s most recent bank statement
Truckers and diesel companies need a DOT Registration. Your business must have a DOT number or an agreement with the company that you are leasing from. You can apply online or on the phone. There is no need to make a promise when doing this.
Vendor 5 – eCredable
Our next starter vendor account is eCredable. This card will give information to D&B, Experian and Equifax. You have to pay $49.95 right away and then $9.95 each month after for the subscription. If you use it, you can build business credit by telling the credit bureaus about your utility and telecom payments.
If you don’t have online access with your service provider, or an online account with your utility company, eCredable cannot link your account and update it automatically.
Their qualification requirements are:
- Being an entity in good standing with Secretary of State
- An EIN
- Business address (matching everywhere)
- D-U-N-S number
- Business license (if applicable)
- A business bank account
Apply online; credit terms are that this is a tradeline payment.
Vendor 6 – Creative Analytics
Creative Analytics is our next account. They work with Credit Safe and Equifax Business. They help people with digital marketing and management consulting. People who sign up for a monthly subscription can get a monthly bill that they can pay off over time. This bill will be for up to $10,000 every month. There is a fee of $79 to apply but it will be refunded if the application is not accepted.
The first month you must buy at least $100 worth of things from this vendor. After that, you don’t need to buy a minimum amount. The annual fee counts toward the first month’s spending. Every month they send information to Credit Safe and Equifax on the last business day.
Their qualification requirements include:
- Being an entity in good standing with Secretary of State
- An EIN
- Business address (matching everywhere; particularly the address listed with D&B should match Secretary of State and IRS records)
- D-U-N-S number
- Business license (if applicable)
- A business bank account
- Time in business of at least 30 days
- A business Phone Number Listed in 411
- No derogatory business reporting or delinquencies
- Payment of a yearly membership fee of $79