Get a Business Loan for $25,000, $50,000 or even $250,000. Here are the last 3 steps. Vendor credit or trade lines are among the fastest and easiest ways to establish business credit. A vendor line of credit is when a company (vendor) extends a line of credit to your business on “Net 30, 60 or 90” day terms. This means you can purchase their products or services up to a maximum dollar amount and you have 30, 60 or 90 days to pay the bill in full. So if you purchase $500 worth of goods today, then that $500 is due within the next 30 days without interest. It’s a terrific way to ease cash flow and begin reporting to the business credit bureaus. When your first Net 30 account reports your trade line to Dun and Bradstreet, the DUNS system will automatically activate your file and your number if it isn’t already. WARNING! There are more than 500,000 vendors that extend business credit, but only 1.2% of them report to the national business credit reporting agencies. We’ll show you in another report, which vendors report that you’ll want to select. The goal is to have at least five Net 30 accounts opened – and reporting. They don’t have to serve 100% of your needs initially. Later, once your scores are built, you can add better vendors, as you need them. Don’t worry, I’ll help you with that list later on. Be patient and allow time for the vendors’ reporting cycles to get into the system and begin impacting your business credit scores. It usually takes 90 to 120 days to build business credit scores because it typically takes three cycles of “Net” accounts reporting to build credit scores. It simply cannot be done faster. And anyone who tells you it can is not being honest with you. Unfortunately, we see claims all the time from advertisers who say they can build business credit in 30 or 60 days but that just isn’t the truth. We wish it were faster. But it usually takes 90 to 120 days while the accounts are reported. Step 6: Create national revolving credit accounts Do not pass “Go” unless steps 1 to 5 are completed To build business credit you need to obtain 3 revolving business credit card accounts. These accounts report to the business credit agencies in different ways and carry more weight than the vendor credit accounts. A revolving credit account is simply one that allows you to pay a “minimum due” per month and not the full outstanding balance. These accounts are another terrific tool to ease cash flow. They normally report to Experian and sometimes to D&B and Equifax. Bet you didn’t know this: there are more 500 business credit card issuers, but only 40 award credit without a personal guarantee! I promise you I’ll give them to you later so you can avoid the hassle and frustration while building your business credit. Because of how they report, these accounts will help build your business credit on a larger scale than just the Net 30 day vendors alone. WARNING! There’s no point in applying for revolving credit accounts if you haven’t done steps 1 through 5. Why? Because you’ll most likely get declined. These accounts will be checking to see that your business credit foundation is set and that your business credit files are open. They may also check your bank rating, look to see if you have some open vendor lines of credit and, in many cases, they will want to see that your D&B file is open. Tip: It doesn’t matter which revolving credit card accounts you open and make purchases with. You’ll have a great selection of companies offering office supplies, building supplies, fuel and we have accounts from major retail and specialty providers. The key is to begin establishing the accounts. Step 7: Get a bank loan that you can use to access cash and improve your business’ credit rating. Getting “bank credit” makes your business more credible in the eyes of almost all other lenders. It’s similar to the day you personally get approved for a home loan. It’s the day, and the event, that makes ALL other lenders take notice and puts you on their credit map. However, too many business owners think that obtaining a bank loan is an impossible dream. Well, it isn’t. I have a proven method for obtaining your first business bank loan. I’ll even provide a list of the banks that have worked with thousands of business owners. IMPORTANT: Do not let your balances exceed 30% of your available credit. Anything above that will negatively impact your credit score. Here’s another secret I bet you’ve never heard before: credit card providers do not report your “available” credit limit, so most lenders assume your “available” credit limit” is your “highest reported balance.” That means when you first receive a business credit card you need to run it up to its limit (not over) and after you receive your first bill, and then pay it down to the 30% level. Going forward you need to maintain a balance of around 30% or less to optimize your business credit score. We can help you with that too. Which brings me to final point… You now have two choices: Continue to beg & borrow with your personal credit OR Get a Business Loan for $25,000, $50,000 or even $250,000. To me and many of Sunwise Capital’s clients the choice is clear. Imagine, not having to rely on your personal credit cards any longer … no longer risking your family’s future … and finally sleeping easier every night knowing that your business credit is separate from your personal credit. Just as importantly, you can finally get the funding you need and not be at the mercy of banks and credit card companies that can cut your credit for no reason at all! What do you have to lose? Hope this helped. Let me know.