Vendor Credit is businesses lending to other businesses.
Most business owners do not take the time to consider how important having vendors credit lines can be. There are over 500,000 businesses in the USA extending credit lines to other businesses. Business to business lending makes up 95% of all business lending in the USA. That leaves only 5% for business credit cards and all other forms of business financing.
Let's take a look at some of the facts about vendor credit lines:
Fact #1 - You can get products and services your business needs and defer the payment on those for 30 days, thereby easing cash flow and establishing business credit. This is called "Net 30".
Fact #2 - When your first Net 30 account reports your "trade line" to Dun & Bradstreet, the Dun & Bradstreet system will automatically activate your file if it isn't already. This is also true for Experian and Equifax.
Fact #3 - Some vendors will approve your company for Net 30 payment terms upon verification of as little as an employer identification number and a 411 listing.
Fact #4 - Always apply first without using your social security number. Some vendors will request it and some will even tell you on the phone they need to have it. Submit first without it.
Fact #5 - Some vendors require an initial prepaid order before they can approve your business for terms.
Fact #6 - You need to have a total of at least five (5) Net 30 day pay accounts reporting for excellent credit. Your vendors do not necessarily have to serve 100% of your business needs.
Fact #7 - Pay your Net 30 vendor accounts in-full and on-time!
Fact #8 - You must be patient and allow time for the vendors' credit reporting cycles to get into the reporting systems. It typically takes 3 cycles of "Net" accounts reporting to build credit scores.
After you take the business finance pre-qualification test, we give you access to a large database of vendor credit lines. We show you what their products and services are, what amount of credit lines they typically extend, what their approval requirements are, and to which agencies they report credit payment histories.