How to start getting business credit
A supplier line of credit is when a company (supplier) extends a line of credit to your company in terms of “15, 30, 60 or 90” net days. This means that you can purchase your products or services up to a maximum dollar amount and you have 15, 30, 60 or 90 days to pay the invoice in full. So if you’re set up in terms of Net 30 and you would buy $300 worth of goods today, then that $300 is due within the next 30 days.
You can get products and services for your business needs and defer payment for those for 30 days, making cash flow easier. And some providers will approve your business for Net 30 payment terms by verifying as little as an EIN number and 411 list.
Always apply first without using your SSN. Some vendors will ask for it and some will even tell you over the phone that they need to have it, but send it without it first. Many don’t even know they can get approved without it.
Most credit issuers will approve you without your SSN if your EIN credit is strong enough. If your EIN credit is not good enough, they may reject it and then ask for your SSN. No matter what ANY credit officer tells you, credit CAN be obtained based solely on your EIN.
You must start a business credit profile and qualify with initial providers. Initial providers are those who will give you initial credit even if you have no credit, score, or business lines now. Most stores like Staples will NOT give you start-up credit, so DO NOT try to apply for it.
Most stores will NOT approve a business owner for business credit unless the owner has an established credit profile and score, just like in the consumer world. Vendor accounts must first be used to establish a profile and score, and then store credit can be earned. It typically takes just 90 days or less to establish a score and profile with business lines.
Get approved for Visa, MasterCard, Discover, and AMEX cards with $5k-10k limits once you’ve established 10 payment experiences. Dell is known for issuing higher limits, so only apply for them after you’ve been approved for other renewable store cards. Limits equal to the highest store credit card on the report.
Continue to use and grow your credit to gain access to even more cash business credit for your business.