The new guide to establish business credit.

[beekrock]

For anyone interested- I have been in business for 4+ years and have one tradeline with Quill. I just two calls today from the same phone number saying I was denied a Net 30 for Staples and Office Depot because they "need a personal guarantee". Staples and Office Depot use the same company for their applications (accountsonline.com, I believe).

 

 

I aslo received a denial in the mail today for a Lowes card, although I may have inadvertantly applied for a revolving account. The denial letter shows that they checked Experian for credit references.

 

 

Damn! Three denials in one day!

 

I'm filling out apps for Grainger, Sears, and Uline right now. Uline asks for two trade references on their app, but I only have one. I guess I'll just leave the other one blank?

[stroked89coupe]

Thanks, Stroked. I've had my company for over 4 years, but my business credit is still in its infancy. I applied for several Net 30s this past week, so hopefully I have some new account soon. Right now I only have Quill.

 

BTW, does it have an impact either way how much a company reports each month? For example, is it better for credit building purposes if Grainger were to be reporting $1000 than just $100? I realize that you'd be spending more, but is it better for your Paydex or when you're applying for revolving accounts?

 

 

You will probably be denied by larger company's due to the fact there is not much information in regards to payment history. Years in business wise your good on anything from net 30's to vehicle financing. Like I said you can apply if you want. What your goal needs to be is Fuel accounts right now. Wright Express mainly as i've found them to be the easiest to work with. With a few net 30 accounts you are already in the door with them and your current years in business will be in your favor. Remember, Years in business is determined by when you registered with the secratary of state. Thats what all of these companys look to for verification.

 

 

Re read the first page and make sure you do similiar steps as to what I have suggested. Also check your dnb and ex and eq frequently for new accounts being reported as that dictates when you can make your next move with a higher approval chance. You do not have to pay for DNB.

 

It does have a huge impact on how much each trade reports to DNB. Huge. Some will deny you just based off of that. For instance we were denied by GE recently for equiment financing (Under 10K). And remember we have over 15k in non pg'd unsecured credit through these guys. They told me there was not enough activity on dnb. I messed up the financing later down the line with a slip up of our actual gross sales instead of what they required (3 million). So that ended everything right there. lol. But generally there will be no difference between a 100 dollar trade and a 1000 dollr trade. DNB actually sets a recomended credit line for you. So when company's check your dnb they see that. Wether they use that or their own scoring model varies. I can tell you most of the time that company's wont rely on another comapny to make financial decisions. But it is there and i would not be suprised if smaller companys used this from time to time. But the trade amount reported affects your paydex in no way shape or form. The higest trade we have reporting is a gas card through wex for like 700 bucks.

 

 

I would not recomend buying anything that you don't ned for credit building. If these places have something you need buy it from them instead of walmart. You may pay a cupple of more dollars for it but it's for a good cause.

Edited March 16, 2012 by stroked89coupe

[stroked89coupe]

I noticed that you wrote that you couldn't get Uline in the beginning, but Quill was fairly easy.

 

I found the exact opposite to be true. Uline gave me Net terms immediately, but Quill is asking for 90 days of prepay.

 

Grainger also was very easy.

 

 

 

 

You know I may have misinformed some with that. Uline had a bad experience with me with the same addresss but with a different business. I think they may have red flagged me in their system. It was for a late/past due amount of under 100.00.

 

With the last business that was the only trade I ever had and applied for and it was easy to get....

[stroked89coupe]

For anyone interested- I have been in business for 4+ years and have one tradeline with Quill. I just two calls today from the same phone number saying I was denied a Net 30 for Staples and Office Depot because they "need a personal guarantee". Staples and Office Depot use the same company for their applications (accountsonline.com, I believe).

 

 

I aslo received a denial in the mail today for a Lowes card, although I may have inadvertantly applied for a revolving account. The denial letter shows that they checked Experian for credit references.

 

 

Damn! Three denials in one day!

 

I'm filling out apps for Grainger, Sears, and Uline right now. Uline asks for two trade references on their app, but I only have one. I guess I'll just leave the other one blank?

 

Office depot and Staples are both financed through CITI. You know the major creditor? I think your skipping a cupple steps. Matter of fact you definetly are. Focus on net 30 accounts. Look in my sig for some examples. Most all report. After you have a cupple of net accounts apply for Wright express gas cards. Once you get to that point and get some gas cards reporting start apping for revolving and major net 30's.

 

 

 

Minor net 30's<Major net 30's<Revolving

 

 

Look in my sig at the trades that I have From left to righ on net 30 and revolving are all in order from 1st obtained to last obtined. Notice they start from bs accounts to major credit grantors. Unfortunatly thats how this game works. Don't get discourged.

[beekrock]

For anyone interested- I have been in business for 4+ years and have one tradeline with Quill. I just two calls today from the same phone number saying I was denied a Net 30 for Staples and Office Depot because they "need a personal guarantee". Staples and Office Depot use the same company for their applications (accountsonline.com, I believe).

 

 

I aslo received a denial in the mail today for a Lowes card, although I may have inadvertantly applied for a revolving account. The denial letter shows that they checked Experian for credit references.

 

 

Damn! Three denials in one day!

 

I'm filling out apps for Grainger, Sears, and Uline right now. Uline asks for two trade references on their app, but I only have one. I guess I'll just leave the other one blank?

 

Office depot and Staples are both financed through CITI. You know the major creditor? I think your skipping a cupple steps. Matter of fact you definetly are. Focus on net 30 accounts. Look in my sig for some examples. Most all report. After you have a cupple of net accounts apply for Wright express gas cards. Once you get to that point and get some gas cards reporting start apping for revolving and major net 30's.

 

 

 

Minor net 30's<Major net 30's<Revolving

 

 

Look in my sig at the trades that I have From left to righ on net 30 and revolving are all in order from 1st obtained to last obtined. Notice they start from bs accounts to major credit grantors. Unfortunatly thats how this game works. Don't get discourged.

 

 

 

The Staples and Office Depot accounts I applied for were Net 30s, but I guess those are considered more major Net 30s?

 

I can't seem to find an application for Geplers or Lab Safety Supply. I tried ordering an item on Geplers website and clicked on the invoiced account payment option, but it's asking me for a PO number. Anyone have a link to either of the apps?

[stroked89coupe]

For anyone interested- I have been in business for 4+ years and have one tradeline with Quill. I just two calls today from the same phone number saying I was denied a Net 30 for Staples and Office Depot because they "need a personal guarantee". Staples and Office Depot use the same company for their applications (accountsonline.com, I believe).

 

 

I aslo received a denial in the mail today for a Lowes card, although I may have inadvertantly applied for a revolving account. The denial letter shows that they checked Experian for credit references.

 

 

Damn! Three denials in one day!

 

I'm filling out apps for Grainger, Sears, and Uline right now. Uline asks for two trade references on their app, but I only have one. I guess I'll just leave the other one blank?

 

Office depot and Staples are both financed through CITI. You know the major creditor? I think your skipping a cupple steps. Matter of fact you definetly are. Focus on net 30 accounts. Look in my sig for some examples. Most all report. After you have a cupple of net accounts apply for Wright express gas cards. Once you get to that point and get some gas cards reporting start apping for revolving and major net 30's.

 

 

 

Minor net 30's<Major net 30's<Revolving

 

 

Look in my sig at the trades that I have From left to righ on net 30 and revolving are all in order from 1st obtained to last obtined. Notice they start from bs accounts to major credit grantors. Unfortunatly thats how this game works. Don't get discourged.

 

 

 

The Staples and Office Depot accounts I applied for were Net 30s, but I guess those are considered more major Net 30s?

 

I can't seem to find an application for Geplers or Lab Safety Supply. I tried ordering an item on Geplers website and clicked on the invoiced account payment option, but it's asking me for a PO number. Anyone have a link to either of the apps?

 

 

Correct. They are both NET 30 accounts. They would be considered major Net 30 accounts due to the fact that they are backed by CITI. Regarding the Gemplers credit..... Put anything for a PO number. It's just a purchase order number. It's used so you can refrence back to the order so you can keep track of things. Last time I checked you could proceed without entering anything as well. As far as lab safty supply goes just click the option to pay by account when checking out. If you don't have that option then you will have to call them to set it up first. I forgot what I did but I do have the option to pay using an account during checkout. They do require a PO and you can enter anything you want in that field... such as ''Truck Restock''

 

 

By the way gemplers and lab safty are the same peple. If you ever send an email to the credit department at gemplers someone from lab safty supply will respond. Just a FYI.

[beekrock]

Hey, Stroked. Apparently Gemplers, Lab Safety, AND Grainger are the same people. As of April 2nd Lab Safety gets taken over by Grainger and anyone who has an existing Lab Safety account will have their account transferred to Grainger. Sucks for me, as that's just one more account I won't have

http://www.labsafety.com/promotion/faq.htm

[stroked89coupe]

Hey, Stroked. Apparently Gemplers, Lab Safety, AND Grainger are the same people. As of April 2nd Lab Safety gets taken over by Grainger and anyone who has an existing Lab Safety account will have their account transferred to Grainger. Sucks for me, as that's just one more account I won't have

http://www.labsafety...omotion/faq.htm

 

Thanks for posting that up.... Grainger as you can see was one of my first accounts. Get your business out there with 411 and make sure your current with the sos. Get one or two trades on dnb and go for it again. Keep at it because it is a pretty easy account to get. If you get a denial from them look for the exact reason they denied you. And always ask for a reconsideration when you receive a denial. It does not hurt to ask specifically why the reason was for the denial. And also ask them specifically what they look for when approving accounts.

[BENJAMINH98]

A quick question on establishing tradelines..

 

Is there a minimum invoiced amount required in order for a company to report your NET account (i.e. do you need to order at least $50, etc)?

[RepoMan31]

According to what everyone has told me on here is that I would at least do $50 because that will report as $100 on your reports.

[beekrock]

A quick question on establishing tradelines..

 

Is there a minimum invoiced amount required in order for a company to report your NET account (i.e. do you need to order at least $50, etc)?

 

 

I've been wondering the same thing. If you were to have 5-10 tradelines it seems like it would be next to impossible to find stuff to buy from them each month. In fact, I'm having a hard time finding stuff to buy from Quill alone each month. Paper, printer ink, and paper towels are all I buy, but even that doesn't amount to $50.

[stroked89coupe]

Why areyou guys trying to purchase supplies each month? Once it reports it stays there. If you purchase from that company that is reporting again....It updates with the new information. Other wise it stays on your report. DNB does list a ''last sale within'' followed by a time such as 6-12 months. But don't worry about that. Just get the company reporting the trade line and order from them only when you need to. It does not have to be every month. I Do not order from the company listed in my sig on a monthly basis.

 

 

 

 

There is no minimum for a company to report. But they do round up your purchases. So for instance if you only purchase a total of 23.00 they will report it as 50.00. Only purchase 50.00? It will report as 100.00

 

 

100 dollar trade lines are a good start. So you would have to have a total amount of 50.00 for your purchase in order for it to report that. Quill has Cleaning supplies. I buy the pinesol from them all of the time. Mainly because it is priced good. Drink Coffe? Folgers is priced good as well. Some of their stuff is overpriced. But not everything. Plus they offer free shipping over 50.00. So you end up paying the same price as you would at walmart plus you don't have to leave the house.

 

 

I currenty make purchases off of my majior net 30's such as staples,office depot and sams. Simply because I am looking to grow those accounts. These other ''SubPrime'' accounts were accounts that were used to simply get me to where I am today. I don't need them anymore.

Edited March 21, 2012 by stroked89coupe

[beekrock]

There is no minimum for a company to report. But they do round up your purchases. So for instance if you only purchase a total of 23.00 they will report it as 50.00. Only purchase 50.00? It will report as 100.00

 

Let's say you order $40 worth of product and the shipping charge is $15. Will they report that as $50, or $100?

[stroked89coupe]

Chances are that it would report as 50. But I can't say for sure. It's possible it would report as 100

[beekrock]

Stroked- I was just looking at the credit apps for Sears and Sherwin-Williams and they both require a SSN for the person signing for the company even if you opt out of the PG. I wouldn't want a hard pull on my personal reports from a biz credit app! How would you deal with this?

[beekrock]

Here's the Sears app in question:http://www.citibank.com/us/cards/srs/apps2dwnld/commercial1.pdf

[BENJAMINH98]

Stroked- I was just looking at the credit apps for Sears and Sherwin-Williams and they both require a SSN for the person signing for the company even if you opt out of the PG. I wouldn't want a hard pull on my personal reports from a biz credit app! How would you deal with this?

 

They have to confirm your identity. The SS# is how they do it. If you don't sign the PG, they won't run it as a PG.

[beekrock]

Stroked- I was just looking at the credit apps for Sears and Sherwin-Williams and they both require a SSN for the person signing for the company even if you opt out of the PG. I wouldn't want a hard pull on my personal reports from a biz credit app! How would you deal with this?

 

They have to confirm your identity. The SS# is how they do it. If you don't sign the PG, they won't run it as a PG.

 

That's what I initially thought, but then I read the following (in reference to the authorized signator): "(iii) authorize Creditor to check with or to investigate from time to time any or all of each of their credit histories, credit reporting agencies or bureaus, credit references and other lawful sources, (iv) authorize creditor to report to or provide credit information relating to any or all of them and the status of the Account to credit reporting agencies, bureaus and others who may lawfully receive such information"

 

So they definitely pull your personal credit report, but the question is whether it a hard or soft pull.

[BENJAMINH98]

Stroked- I was just looking at the credit apps for Sears and Sherwin-Williams and they both require a SSN for the person signing for the company even if you opt out of the PG. I wouldn't want a hard pull on my personal reports from a biz credit app! How would you deal with this?

 

They have to confirm your identity. The SS# is how they do it. If you don't sign the PG, they won't run it as a PG.

 

That's what I initially thought, but then I read the following (in reference to the authorized signator): "(iii) authorize Creditor to check with or to investigate from time to time any or all of each of their credit histories, credit reporting agencies or bureaus, credit references and other lawful sources, (iv) authorize creditor to report to or provide credit information relating to any or all of them and the status of the Account to credit reporting agencies, bureaus and others who may lawfully receive such information"

 

So they definitely pull your personal credit report, but the question is whether it a hard or soft pull.

 

I've applied for both and neither pulled from my personal files throughout the entire process. It is telling you that Citibank will check whatever credit that they can to determine your company's credit worthiness. It is also stating that it can/will check the PG's credit worthiness.

 

When it states "applicant", it is referring the business and/or PG, not the authorizing officer..

Edited April 1, 2012 by BENJAMINH98

[beekrock]

I just got an email from D&B saying that I now have a Paydex of 80. I only have three items reported: two recent ones for $50 each and one cash instance from almost a year ago. I'm still waiting for about 4-5 other Net 30s to report. Should I wait for these to report before attempting other apps?

[Lorentsen]

I just got an email from D&B saying that I now have a Paydex of 80. I only have three items reported: two recent ones for $50 each and one cash instance from almost a year ago. I'm still waiting for about 4-5 other Net 30s to report. Should I wait for these to report before attempting other apps?

 

Getting a Paydex of 80 does not open the floodgates of credit, other factors like: Highest credit limit, highest paid balance, payment history and debit to credit limit ratios are also important. If all your purchases are small ($50 for example) and few, there will be no rush for businesses to extend you credit. You won't be much better off than you were before you hit Paydex 80. Especially when trying to establish revolving accounts.

 

It is also important to be listed with credit agencies like Equifax and Experian.

 

[PrinceChristian]

Just wanted to say hey and thanks to all here for the dialogue within this post. Have learned much from it! Will share my story soon.

[alplouis]

I just got an email from D&B saying that I now have a Paydex of 80. I only have three items reported: two recent ones for $50 each and one cash instance from almost a year ago. I'm still waiting for about 4-5 other Net 30s to report. Should I wait for these to report before attempting other apps?

 

Your payments will report over time. Building business credit takes time & Patience.

[Debt Performance]

Great post!

 

I just wanted to mention a couple of things i have found while establishing my business credit.

First I got a local virtual number from Google voice that forwarded to any of my actual phones and i was able to set the hours i would take calls (9-5)

I also have been successful using list yourself to add my new Google number to directory listings, it's a free service and it works in 3 or so days,

when potential creditors look up your number your business comes up, I verified this while I was applying for Verizon cell phones.

Last but certainly not least, In business whether you re filling in a credit application or dealing with a client you need to feel and look professional and nothing feels and looks better than your

own business email. venturelogix business hosting gives net 60 accounts and reports twice to D&B.

Which brings me to my last point, I have a lot of friends that purchased 1 item from 3 creditors and are wondering why 2 years later they are still building,

If you want to move up you'll need to make a couple of purchases to establish that you can maintain an account.

 

 

 

 

[alplouis]

Great post!

 

I just wanted to mention a couple of things i have found while establishing my business credit.

First I got a local virtual number from Google voice that forwarded to any of my actual phones and i was able to set the hours i would take calls (9-5)

I also have been successful using list yourself to add my new Google number to directory listings, it's a free service and it works in 3 or so days,

when potential creditors look up your number your business comes up, I verified this while I was applying for Verizon cell phones.

Last but certainly not least, In business whether you re filling in a credit application or dealing with a client you need to feel and look professional and nothing feels and looks better than your

own business email. venturelogix business hosting gives net 60 accounts and reports twice to D&B.

Which brings me to my last point, I have a lot of friends that purchased 1 item from 3 creditors and are wondering why 2 years later they are still building,

If you want to move up you'll need to make a couple of purchases to establish that you can maintain an account.

 

Very good point about the business email. I know for a fact that Tech Depot denied someone for not having a business email address. Sounds crazy but it happens.