Business credit helps to increase the credit score of businesses. A Net-30 vendor account is the easiest way to do this. The companies should report to the credit agencies in order to build credit scores by using them. It is simple to set up the accounts.
Understanding Net-30 Accounts
These accounts are a type of business credit that allows thirty days to pay the full cost of products that have been purchased. Establishing strong credit for your business is done when the vendors report the payments made to commercial credit agencies. Even young companies can build credit using vendor trade credit.
Vendor Trade for Business Credit
Vendors offer various lengths of time to pay the debt. The terms will vary based on the vendor and you must agree to them to be able to use the line of credit. Ensure that the fine print is understood so that payment terms are met. The Business Launcher tool and a Nav account can help with business credit also.
Steps Before Business Credit
The business must be legitimate to obtain credit making it important to set it up correctly. Set up your business as a legal entity of its own such as an S Corporation. Make sure to register your business with the Secretary of State if you are going to operate a sole proprietorship. A separate bank account and email address are needed for your business to keep it separate from your personal life and increase legitimacy.
Vendors that Build Business Credit
As an example, Shirtsy prints on-demand customizing and designing a variety of items. All the major credit bureaus receive reports from it. Shirtsy works with both small new businesses and larger more established businesses. There is an annual fee to use the service. Companies with exceptional credit have the chance to have the fee waived.
Crown Office Supplies offers credit reporting for the variety of office supplies they provide to help build business credit. Creative Analytics, Uline, Quill, and Summa Office Supplies are just a few vendors that help to build business credit.
It is very important to check with your vendors to make sure they submit reports to credit bureaus, so your business can build and improve its credit ratings.