How to Build and Boost Your Business Credit
(or keep reading below)
What is Business Credit?
Business credit scores, like the ones provided by Dun & Bradstreet, Experian Business, and Equifax Small Business, are an estimation of a business’s risk, or ability to repay a loan or other financial obligations, much like personal credit.
It considers existing business and personal credit, along with factors like assets, liabilities, cash flow, business longevity, and legal issues, resulting in scores ranging from 0-300, depending on the credit bureau.
A strong business credit score can help a company qualify for loans, lines of credit, business credit cards, and even more favorable terms with suppliers.
Establishing Credit Accounts
Establishing net 30 accounts is essential in building your business credit. Here are three (3) types of accounts that will help your business build credit:
Vendor/Supplier Credit – Many vendors and suppliers extend credit to businesses, typically on net 30 terms.
Service Credit – Your internet, cell phone, and utility services are all agreements your company makes with service providers.
Business Credit Cards – A business credit card can be used in a way similar to vendor credit: you can purchase items you need for your business and pay for them later.
Report Your Existing Credit Accounts
You may already have accounts that give you payment terms, even if you don’t think of them that way. For example, a cell phone bill, internet service, utility bills, etc. But often those accounts don’t report to business credit and therefore your monthly payments don’t help you build credit.
Fluid Capital have services available that will verify and report accounts to multiple business credit bureaus. What’s more, it will report recent payment history up to 24 months. That means you can get “credit” for bills you already paid!
Before You Apply for Credit Accounts
Before you start applying for vendor accounts, it’s important to make it as easy as possible for vendors to report your payment activities.
We recommend you take these steps before you apply for accounts:
STEP 1: Get a DUNS number if your business doesn’t already have one. The DUNS number is the identifying number in the Dun & Bradstreet database. Not sure if your business has one? Look up your business credit for free here.
STEP 2: List your business phone number with a directory assistance. This will help creditors (and customers) find and verify you as a business. Here’s how.
Where to Apply for Accounts?
You should first reach out to your current vendors and ask them if they can report your activity to a credit bureau.
Depending on your industry, different types of vendors will be more or less suitable to your business needs.
Next, is a list of different vendors that you can establish net 30 accounts with and that report back to one (1) or more business credit bureaus.
20 Net-30 Accounts to Build Your Business Credit
Fidextech
Digital marketing agency specializing in web design, app design, and digital marketing services.
HD Supply
Offers a wide variety of products for business professionals in maintenance, repair, and operations (MRO).
Wayfair Professional
Offers office and storage supplies, furniture, lighting, tech accessories and much more.
Office Depot OfficeMax
Office Depot offers a wide range of office supplies, printing, furniture and more.
Amazon
Amazon offers a large selection of products for businesses. In short, everything.
Uline
Packaging, janitorial, food service, safety warehouse supplies and more.
Coast to Coast Office Supply
Office products and digital downloads (software and eBooks).
Staples
Staples offers a wide variety of office products and serves more than 2 million small business customers.
Supplyworks
The wholesale distribution division of The Home Depot® offering pro-grade products.
JJ Gold
Corporate gifts, jewelry, personal care and cosmetics.
Creative Analytics
A full-service digital marketing agency that offers business accounts that help build credit.
Business T-Shirt Club
Wholesale blank apparel including t-shirts, sweatshirts, hats, outerwear, and much more.
Newegg Business
Offers a wide variety of technology products and solutions.
Summa Office Supplies
Office supplies such as paper, folders, envelopes, labels etc.
NAMYNOT
Digital marketing services including SEO, content writing, and social media management & marketing.
Office Garner
Apparel, offices supplies, electronics, website design, business cards and more.
The CEO Creative
Office supplies, custom website design and branding services, electronics and custom apparel.
Ohana Office Products
Offers a large variety of office products.
Wise Business Plans
Specializes in creating professionally written business plans, pitch decks and presentations.
Grainger
Over 1.6 million industrial and safety products offered.
Monitoring Your Business Credit
Like personal credit, it's important to regularly monitor business credit profiles, dispute inaccuracies, and maintain good financial practices to ensure a positive credit standing.
Here are four (4) places to monitor your credit:
Dun & Bradstreet - by registering a Dun & Bradstreet number, you can monitor your business credit directly.
Experian Business Credit - you can monitor your business credit profile directly with Experian for a cost.
Equifax Business Credit - Similar to Experian, you can monitor it directly with Equifax.
Nav.com - You can monitor all credit bureaus for free. Paid versions give you access to more detailed reporting and your SBSS Score, which the SBA uses.
Notes & Disclaimers
The information provided about financial products is for informational purposes only and should not be considered financial advice. It does not constitute an offer, endorsement, or recommendation of any specific product or service.
Before making any financial decisions, carefully consider your individual financial situation and goals, and/or consult with qualified financial professionals and conduct your own research to assess the suitability and risks associated with any financial product or investment and ensure that it aligns with your financial needs, capacity, and goals.