Business Credit

Why You Need Business Credit Builder?

Business credibility is about improving the quality of being trusted and believed in. Boost your business credibility to control perception. Have you selected the name for your business? Make sure your business name can be trademarked and does not include high-risk industries. In this regard, you need a business credit builder to help you with building business credibility. The process of building the business credibility involves 10-steps including, registering business name, address, entity, EIN#, a listing of phone numbers, getting a website and an email, license, business bank account, merchant account, and a wrap-up. Most lenders prefer that you have a business address, and the address should be available on all records. However, you need to ensure that all the 10-steps are followed. If any of this information varies, it may lead to issues while applying for financing.

Guide to improve business credit for small business

The step involves 4-sub steps, which need to be fulfilled to establish business reports, and complete step 2. The first sub-step is Dun & Bradstreet, which is a business credit bureau. You need to apply for a DUNS number to verify the address listed for your D&B account. The next sub-step is to find out if your business is listed with Experian. In case of any discrepancies, you can fix them through the direction provided in step 2.4. Another sub-step is business Equifax to find out whether your business is listed with Equifax. If yes, it is great news; if not, we will help you build your profile. In case of any discrepancies, you can fix them via the information given in step 2.4.

Start Business Credit Building: Tier 1

It is the first set of business credit accounts that you will apply for your business. Not every business credit account report to credit bureaus. When you apply for a business account that report and approve your business without a personal guarantee, you are starting to build the credit for your business. This is similar to Credit Cards. The first card might not have been desirable, but it served as the first step to build your credit profile with the credit bureaus. To start business credit building, you need to get in touch with business credit professionals.

Why Monitoring Business Reports are important for New Business Startup?

There are six steps that monitor different areas of the business. The business credit report monitoring involves analyzing Experian, and Duns & Bradstreet reports. It is essential for new business owners and for those who are planning for a new business startup to understand the credit report of their business. Every credit bureau has different scoring models and monitoring services. Identify your goals in regards to the business credit building. Then request for Lexis Nexis Report, which verifies personal or business credit history, public records, and application history. Finally, request Chex System Report that provides information about the deposit accounts to primary banks and credit unions.

Building Credit or Start Business Credit: Tier 2

Tier 2 of trade accounts further establishes your business credit reports and another 3 trade accounts that report and make the 6 in total trade accounts. If you do not have a sufficient number of trade accounts, you need to apply for the rest to take the number to 6. It would take 30-90 days from the day you make your payment for your trade account to report on your business credit report. If you have any questions related to it, our team is here to help.

Advanced Building: Tier 3

The tier 3 trade accounts further improve your business creditability; you’ll need to add another four new trade accounts to take the number of trade accounts to ten. Always use correct information while applying for trade accounts and make sure every information matches your business records. Whenever you make purchases, do that on your net or credit terms. It is the payments' credit terms that are reported. On average, it takes about 30-90 days for your trade accounts to report and to complete this step. If you need any help or suggestions, connect with our team for professional advice.

Revolving Accounts or Building New Business Credit: Tier 4

The revolving accounts are tier 4 of trade accounts to improve your business credit reports or build new business credit. The goal here is to add another 4 accounts to make the total number of trade accounts to fourteen. However, you need to have at least ten trade accounts while applying for the four new revolving accounts. While applying for accounts, make sure that you provide correct information that matches your business records. It may take 30-90 days for your trade accounts to be reported to the credit bureaus.