• Prestige Elite Group

5 Steps for African Americans To Start Building their Business Credit

Updated: Aug 21, 2018

Businesses have the potential to make the economy progressing, generating jobs and genuine development, but obtaining business credit becomes difficult to acquire. No matter the magnitude of your business, a good business credit is important. If you decide to create a lineup of credit with sellers, apply for and be granted a business loan or prepare the main procurement for your business, you need an outstanding business credit. However, attaining business credit stays perplexing for businesses, and those that do obtain credit frequently make detrimental mistakes. Nevertheless, building your business credit is not an easy task. This may be the situation if you are just starting your business and you have limited credit history. Here are 5 major steps to build your business credit:

1. Get Listed with The Business Credit Bureau

There are numerous credit bureaus that accumulate data and build business credit scores. The three main credit bureaus that collect data and accumulate business credit scores are Experian, Equifax, and Dun & Bradstreet. These bureaus all have different procedures of collecting data and estimating scores, so

it is vital that you supervise your basic profile and upload present financial statements of your business. Your credit score is the major decider in building your business credit.

2. Establish Lines of Credit with Vendors and Suppliers

Another means of building your business credit requires creating trade lines with vendors and suppliers that are essential for your business. Not only can these bases function as references if you choose to acquire a greater line of credit, but they also give details back to the credit bureaus, thereby creating good credit for your business. Start with the top 3 vendors below. Remember NOT to provide your Social Security and if a vendor ask for it tell them you only want to set up a business account NO MATTER WHAT! Order in the amount of $150.00 You want to repeat this for up to 4-5 months. The goal is a 80 Paydex. (*a High business credit rating.)

You can always add more vendors in the future. For a list of More vendors you can find them HERE.

Top 3 Vendors to Start Up With:

  • Uline.com

  • Reliable.com (*Partnered with Office Depot)

  • Grainger.com

3. Leverage Current Accounts

Once a business becomes successful, it has affiliations with a range of vendors, but they might not be used to build their credit. For instance, if you are a landscaper, you might be giving cash out of pocket to Home Depot with 30 days’ profit periods. These financial records you already have are a great tool that can build your credit, if organized properly. Do NOT go on a application spree. This will RED FLAG your company and then you will have to start over again at establishing a New entity. Establish a minimum of "5" vendor accounts.

4. Get A Credit Card for Your Business

A basic credit card in your business' name will let you begin to build business credit instantly. Look for a credit card that accounts to all three major credit bureaus. Most business owners turn out to use two to three cards because accountable credit usage on numerous accounts will fortify a credit report, and help build up business credit over time. You Only need to start with 3 revolving accounts. Process your revolving accounts like you processed your vendor accounts. Charge up to 20% on the line and then pay it back on time.

(*Use a Credit Partner if you have personal credit issues. There's services online that provide Credit Partners.)

5. Maintain Clean Public Records

Besides collecting data from your vendors and suppliers, business credit bureaus take into account any public records concerning your business such as court judgments, liens, and bankruptcies. Keep payments to creditors up to date to evade bad marks on your record. It is essential to pay off your credit accounts and small loans immediately. This is another means to build your business credit. Each single time you pay off a balance, you are enhancing your business credit.

As a Gift here is a FREE DOWNLOAD Guide to Building Business Credit & Funding for the year of 2018.

The capacity to build business credit is crucial for the accomplishment of your business, however, building that credit is a continuing procedure that requires time and work. Follow these steps above for guidance on how to build business credit, and ensure to check your business credit report frequently.

#BusinessCredit #Funding



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Email: support@prestigeelitegroup.com

Prestige Elite Group

4181 NW 1st Ave. Suite 6-2142

Boca Raton, FL 33431

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