Obtaining vendor credit for new businesses can help to build business credit history with Dun & Bradstreet, Experian, and other major business credit reporting agencies. This article reviews what starter vendors are and suggests 3 that can help your company to establish small business credit lines, operate more efficiently, improve fundability, and grow.
Every entrepreneur needs to establish and maintain excellent small business credit. This will open the doors to many opportunities to do business with more sophisticated vendors, credit card issuers, and lending institutions in the future.
What are starter vendors?
Starter vendors are those that will extend credit lines to new small businesses without a lot of qualifying standards. These vendors are excellent for new start-ups that have no credit history, no business credit PAYDEX score, and no business trade lines.
Note that major vendors like Staples do not extend initial starter credit. You'll save time, frustration, and likely rejection by beginning with companies like the 3 listed below.
Vendor Credit for New Businesses: Uline Shipping Supplies ULINE
offers more than 36,000 products including janitorial supplies, warehouse equipment, material handling products, hand-trucks, boxes, and dollies.
This company reports to Dun & Bradstreet, which is what you want because it establishes your company as a legitimate business entity with credit history. Make sure that all starter vendors that you do business with report to D&B or other business credit reporting agencies. That is what builds business credit!
You will need 2 business references, a bank reference, and DUNS Number to open an account with ULINE. You may be required to pre-pay the first order or two. After that, you will likely be approved for a Net 30 account, meaning you have 30 days to pay for any merchandise you receive.
Vendor Credit for New Businesses: Quill Office Supplies Quill
offers thousands of products that every business owner needs - including ink & toner, office furniture, printing paper, breakroom supplies, janitorial supplies, and office technology products.
This starter vendor places all new businesses on a 90-day prepayment plan. Once a company has ordered 3 months consecutively, and made prompt payments, it is typically approved for a revolving Net 30 account. Quill also reports to Dun & Bradstreet.
Vendor Credit for New Businesses: Grainger Industrial Supply Grainger
sells hardware, power tools, water pumps, and other related products. This company also offers fleet maintenance services. You will need a business license, a DUNS Number issued by Dun & Bradstreet, and an employer identification number (EIN) issued by the IRS. For a credit line of $1000 or more, you will also need to show bank and trade account references.
Summary for Vendor Accounts That Build Your Business Credit
Building business credit takes time, especially if you have poor personal credit. Establishing starter vendor credit for new businesses can expedite the process and provide access to many products and services that your business may need to sustain operations and grow.
Remember to look for starter vendors that report to D&B, Experian, or Equifax. Make every payment on time or ahead of schedule. Don't overextend yourself. Only use about 30% of your available credit before paying it back in full. Then, use more, if needed.
Over time, your business credit rating will improve, which opens you up to more attractive opportunities for credit and money loans. If you have questions, feel free to contact the friendly and knowledgeable team at Genesis Business Credit
today. We help motivated entrepreneurs get the credit they need to grow their operations. Sources ULINE QUILL GRAINGER