How to Start Building Business Credit Decoding Net 30 Accounts

HOW TO START
BUILDING BUSINESS
CREDIT…
DECODING NET 30
ACCOUNTS

Ty Crandall
Chief Executive Officer
(877) 600-2487
info@creditsuite.com

Busine ss Cre dit
 Business Credit, also referred to as Corporate Credit, is
credit that is obtained in a Business Name
 With business credit the Business builds its own credit
profile and credit score linked to the business EIN
number… not the owner’s social security number
 With an established credit profile and score, the business
will then qualify for credit

 This credit is in the business name and
based on the business’s ability to pay,
not the business owners
 Since the business qualifies for
the credit, when done right business credit is obtained
with no personal credit check required from the business
owner
 And, the business owner isn’t personally liable for the
credit the business obtains
Busine ss Cre dit

Busine ss Cre dit
 EVERY highly successful business has
business credit
 This is how the largest privately and
publicly owned companies obtain
credit and capital to grow…without the
CEO or owner needing to personally
guarantee the credit and financing
 But even startups can obtain the same
type of credit… it’s just about
understanding the proper steps

Busine ss Cre dit Be nefits
 Business credit provides a lot of
exclusively unique benefits
 For one, a credit profile can be built
for a business that is completely
separate from the business owner’s
personal credit profile
 This gives business owners DOUBLE
the borrowing power as they have
both Personal and Business credit
profiles built

 Business credit can be built quickly
because business credit scores are based
only on how the business pays it’s bills
 A business must first get approved for
initial credit, usually from VENDORS
 Once credit is approved, the business uses the credit to
make purchases
 Once invoiced, if the business pays the invoice quickly it
IMMEDIATELY is issued a HIGH credit score

 When it comes to credit, businesses have a much greater
need for higher CAPACITY than a consumer does
 This is why approval limits are much higher on business
accounts versus personal accounts
 Per SBA, credit limits on business cards are usually 10-100
times higher than consumer credit

 Here are some recent approvals:
• Apple $7,500 and $12,500
• Universal Fleet $4,500
• Tractor Supply $5,000
• BP $8,000
• Fuelman Fleet $16,000
• Exxon $15,000
• Office Depot $15,000
• Costco $20,000
• Sears $15,000
• Best Buy $40,000
• RJS Fleet $40,000

 When done correctly Business Credit can be built without a
personal credit check… and without putting your SSN on an
application
• No inquiries on your report
 Business credit can quickly be obtained regardless of personal
credit quality
 And there is no personal credit reporting of business accounts
• Utilization won’t affect your consumer FICO score

 Most business credit can be obtained without the owner
taking on personal liability, or a personal guarantee
 This means in case of default, the business owner’s
personal assets can’t be pursued
 Business credit also increases the value of your company
 And, business credit gives you a competitive advantage

 Almost any business can get business credit as long as
it has an EIN number and entity setup
 You don’t need collateral
 You don’t need financials
 You can be a startup
 Personal credit quality doesn’t matter
 You just need to know the proper building steps

 ANYONE can pull your business credit reports without
your permission
 Clients, prospects, potential buyers, even competitors
can see YOUR business info.
 This means they can see…
• Payment history
• High credit limits
• Employees and revenue
• Past payment performance
• And much more

 ALL lenders and credit issuers also review your
business credit reports to determine:
• If you’ll be approved or denied
• The rates and terms you’ll pay
• How much you’ll get approved for

CHECK OUT SOME REAL BUSINESS CREDIT
APPROVALS

How to Start Building Business Credit Decoding Net 30 Accounts

Trad e C r e d i t
 Vendor credit is sometimes refereed to as trade
credit
 This type of credit is extended from one trader to
another for the purchase of goods and services
 Trade credit facilitates the purchase of supplies
without immediate payment
 Trade credit is often used by business
organizations as a source of short-term financing

Trad e C r e d i t
 Trade credit is the largest use of capital for a majority of business-
to-business sellers in the United States
 For example, Walmart, the largest retailer in the world, has used
trade credit as a larger source of capital then bank borrowing
 Trade credit for Walmart is 8 times the amount of capital invested
by shareholders
 Trade credit is the second largest source of capital for Walmart,
retained earnings is the larges

Trad e C r e d i t
 Trade Credit is usually offered with terms
including:
Net 10
Net 15
Net 30`
Net 60
 These forms of trade credit specify that the net
amount is expected to be paid in full and received
by seller within that 10, 15, 30, or 60 day time

Trad e C r e d i t
 The word net in this sense means “total
after all discounts”
 An example includes a company such as
Quill letting you purchase items on a Net 30
term
 You make the purchase using your credit,
and are given an invoice with Net 30 terms
 This means you have 30 days from the day
the services are rendered or your items are
shipped to pay your balance in full, minus
any discounts
 So, if you purchased $100 worth of office
supplies, you need to pay back the $100

Trad e C r e d i t
 Legally speaking, net 30 means that you as the buyer will pay the
seller on or before the 30th calendar day (including weekends and
holidays) of when the goods were dispatched by the seller, or the
services were fully rendered
 Transit time is included when counting the days
 If you pay after that 30 day period, you’ll typically be charged
interest for not meeting the terms
 If you pay late, you’ll also damage your business credit scores if the
account reports to a business reporting agency

Trad e C r e d i t
 Net 30 terms are the most
popular form of trade credit
 Net 10 and Net 15 terms are
widely used as well, especially
with contractors and service-
oriented businesses
 Net 60 terms are not as
common due to the longer
pay-back term, but are
sometimes issued

USING TRADE
CREDIT TO BUILD
BUSINESS CREDIT

 Trade credit is VERY popular in the United States
 But, of the millions of vendors who issue credit,
over 97% of them do not report to the business
credit reporting agencies
 When using trade credit to build your business
credit profile, it’s essential you find vendors that:
• Will give you credit without a personal credit
check
• Report your credit to the BUSINESS credit
reporting agencies
Using Vendors to Build Business
Credit

Credit
 The first step to using trade credit and vendors to
build business credit is to find sources who will give
you credit for your business, even if you have no
credit reporting now.
 Most major retailers will offer EIN credit in your
business name only
 But, only a VERY small few will issue you this credit
if you have no business credit established
already… unless you’re willing to provide a
personal guarantee or credit check

Credit
 If you do use your SSN when applying, the vendor
will pull your personal credit and an inquiry will be
placed on your personal credit report
 Then, both your personal and your business credit
will be used to make the approval decision
 You’ll also be attaching a personal
guarantee, so in the case of default
your personal assets can be
pursued

Credit
 To obtain vendor credit without a
personal credit check or guarantee,
you’ll need to find trade vendors who will
give you credit for your EIN… even when
you have no established credit now
 Once you find these vendors, it’s essential to make
sure they report the credit to the business reporting
agencies
 The VAST majority of vendors don’t do this, so the
credit issued then won’t help you build your corporate
credit

Credit
 Vendors who will give you credit when you have none reporting now,
and report to the business reporting agencies, are very rare
 They’re so rare that when you do find them, you may need to buy
some items you normally wouldn’t buy from sources you wouldn’t
normally buy from
 These sources in return provide you MASSIVE benefits including:
• Taking a risk in issuing you credit, even though you have no track
history

Credit
 Once you get credit with vendors, use
the credit, and pay the bill, the account is
reported to the business reporting
agencies
 Some vendors report credit weekly, others report
monthly, and others may report quarterly
 It’s a great idea to ask vendors when and how often
they report so you know what to expect

Credit
 One of the easiest and most useful vendors you’ll find to help
build business credit is Quill
 Quill sells office supplies and many other useful products for
businesses
 Quill offers Net 30 terms, and will approve you even as a
startup
 You should order $50 or more to have your credit reported to
Dun & Bradstreet
 They review your D&B and Experian reports, and may require
a couple of initial purchases first if you have no credit
reporting now

Credit
 To get approved with Quill, visit their website
www.quill.com and select $50 or more worth of
items and place them in your shopping cart
 Go to checkout, and choose to open an account
 Select to be invoiced, and do NOT enter your
credit card information upon checkout
 You’ll be notified by email that you are not
approved, or that your item has been shipped

Credit
 Uline is another great starter vendor that offers
shipping and packaging supplies
 They issue Net 30 terms and report your credit to
D&B
 They will want you to have your D-U-N-S number
from Dun & Bradstreet before you apply
 They will ask for 3 references upon enrollment
 You may need to pre-pay for your
first couple of orders before you get
approve

Credit
 To get approved with Uline,
visit their website
www.uline.com and select items
and place them in your
shopping cart
 Select to be invoiced, and do NOT enter your credit
card information upon checkout
 You’ll be notified by email that you are not
approved, or that your item has been shipped

Credit
 Grainger is another great starter vendor
 Grainger sells industrial supplies
 They issue Net 30 terms and report to D&B
 Grainger is notorious for offering nearly all
applicants a $1,000 line-of-credit
 You must apply with them by phone 800-323-0620

Credit
 Seton will issue net 10 terms to businesses that have no prior
established business credit
 They sell all types of safety signs, labels, asset tags, first aid kits,
and thousands of other products
 They report your credit to D&B
 Visit www.seton.com and put items in your cart that you want to
purchase
 Select to be invoiced, and do NOT enter your credit card
information upon checkout
 You’ll be notified by email that you are not approved, or that your
item has been shipped

Credit
 Gempler’s is a leading provider of work supplies and offer
over 35,000 different products
 They issue Net 30 terms and report to D&B
 You must order $50 or more of items to have your account
reported
 To get approved, call 800-382-8473 and ask for a credit
application
 Complete your credit application, but leave the SSN field
blank

Credit
 Gempler’s is one of the hardest of these vendors to get
approved with
 They will typically want you to have some type of credit
already established before they’ll approve you
 They are also the only one mentioned that requires you
complete a paper application
 And they are one of the only sources that actually ask
for your SSN… even though you don’t have to provide
it to them

Credit
 You’ll need to get credit with at least
5 vendors to have enough trade
lines to start getting revolving credit
in most cases
 REMEMBER, you MUST pay your bill on time or early
 For your credit to get reported, you have to pay it
AFTER the invoice is issued… that’s when the Net
term starts
 If you pay it before that, you won’t get credit on your
business reports

Credit
 Pay your bill promptly AFTER receiving your invoice
 Most sources will let you pay online, or by phone,
using a checking account or other credit card
 Allow 30-90 days for your credit to report, 60 days
is the average time for credit reporting

Credit
 Monitor your business credit reports to
watch your trade lines get reported…
and your scores established
 www.creditsuite.com/reports
 Your scores directly reflect how you pay
your bills:
• 80 Paydex = Pay prompt
• 90 Small Business Risk Score = Pay as
agreed
 So ALWAYS pay early or on time

Credit
 Once 5 accounts are reporting to D&B, Experian,
and Equifax combined, you can then start getting
credit with most stores
 You can then grow your credit to qualify for fleet
credit, cash credit cars, and auto vehicle financing

HOW TO START BUILDING BUSINESS CREDIT…
DECODING NET 30 ACCOUNTS
CONTACT US TODAY TO LEARN
MORE
877-600-2487
INFO@CREDITSUITE.COM
WWW.CREDITSUITE.COM

How to Start Building Business Credit Decoding Net 30 Accounts

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