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We Simplify Business Credit Building
Find vendors and suppliers who report to business credit bureaus.
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Business Credit Building:
Obtaining a separate business credit identity is essential.
You will need business credit to obtain financing and make expenses directly related to your business. Our employees will help you meet every single requirement that lenders have, including unpublished underwriting requirements, in order to reach approval standards before you apply for credit. With our guidance, you can build your business credit identity by establishing and maintaining initial and revolving business credit lines.
Building Business Credit
( EIN Only )
When you first start building business credit, you’ll generally struggle to qualify for financial tradelines like business credit cards or loans. Fortunately, vendor credit is easier to obtain and can be a great way to lay the foundation for your business credit.
These are Starter Accounts - Simple Approvals to start your Business Profile - After 3 Months of ON TIME Payments, The doors are open to build your business credit. In 6 to 24 months you should have 15 to 21 accounts.
NOT ALL business credit vendors require subscription fees, as you build REAL credit, you will not be paying subscription fees.
Tier 1 to Tier 8 Net 30 Accounts
Most net vendor accounts require specific application approval requirements, which are different from one another. Those in lower tiers offer easy access to small businesses, whereas those in upper tiers require a combination of credit score, financial information, and trade lines.
Tier 1 – Net 30 Accounts
- Vendor accounts in Tier I are the easiest to apply for because these accounts do not require many requirements.
- Your Tier 1 vendor account will require you to demonstrate you are a registered legal business entity with your Secretary of State, and that you have 2 or 3 of the following.
- Some examples of Tier 1 vendors would include Quill Supply Store, Crown Office Supplies, HD Supply, Office Garner, and Uline Office Supply, Grainger, Staples, Fidextech, Office Depot - Office Max
Tier 2 – Net 30 Accounts
- Tier 2 business credit generally requires a little business credit history, and/or a personal guarantee (PG), if you don’t meet the requirements.
- Establish a credit history with both Experian and Equifax
- D&B Paydex score and up to five trade lines of credit
- Business Address that matches everywhere
- A good credit score
- Some examples of Tier 2 vendors would include Sunbelt Leasing, Valero, Home Depot Commercial
- (Net 30), Apple Lease Financing, and United Rentals
Tier 3 – Net 30 Accounts
- Tier 3 requires a well-established set of trade lines and financial stability. Here are some extra
- things you might need:
- More than 7 Dun & Bradstreet trade lines
- More than 3 Experian and Equifax tradelines
- At least one line of trade with a limit of $500 or more
- There are several Tier 3 vendors to consider, including Chevron/Texaco Gas Card, Best Buy, NewEgg, and Dell Business
Tier 4 – Net 30 Accounts
- In Tier 4 and beyond, you’ll need a decent limit on one of your trade lines while adding at least three more vendors.
- More than 8 Dun & Bradstreet trade lines
- More than 7 Experian and Equifax trade lines
- At least one trade line with a limit of $2500 or more
- Some vendors in the Tier 4 range could include Key Bank Business Card, Apple Lease Financing, Sunbelt Rentals, and United Rentals
Tier 5 – Net 30 Accounts
- To reach Tier 5, you must double your highest trade limit and add five more vendors. 12+ D&B Trade Credit Lines High Credit Trade Limit of $5,000+ 10+ Experian, Equifax, Creditsafe Trade Credit Lines Tier 5 vendors include Home Depot Revolving, Lowes Revolving, Amazon Business, Tiger Direct, TSC Tractor Supply, and Macy’s.
Tier 6 – Net 30 Accounts
- For Tier 6, you’ll need to double your highest trade limit again and add five more vendors.
- 20+ Dun & Bradstreet trade lines
- 15+ Experian and Equifax trade lines, At least one $10,000+ limit trade line
- Some examples of Tier 6 or higher vendors include Sam’s Club Card, Dell, RaceTrac Fleet Card and CSI Gas Card
Tier 7 – Net 30 Accounts
- 20+ D&B Trade Credit Lines
- High Credit Trade Limit of $10,000+
- 18+ Experian, Equifax, Creditsafe Trades
- There are several Tier 7 vendors to consider, including Accion Loans, SBA Microloans, Best Buy, TimePayment (Equipment Financing), and Kiva (Debt Crowdfunding
Tier 8 – Net 30 Accounts
- High Credit Trade Limit of $30,000+
- Financial Statement in D&B Profile
- There are several Tier 8 vendors to consider, including Ford Motor Credit, Toyota Financial Services and GM Financial
What is a no-doc business loan?
The term “no-doc business loan” refers to any small business loan that requires minimal paperwork for approval. These loans typically have higher interest rates and shorter repayment terms than traditional bank loans or a Small Business Administration (SBA) loan. However, they’re often a good option to help those who may not be able to qualify through traditional lenders.
Although they’re called “no-doc loans”, lenders typically require some proof that you’ll be able to repay the amount you want to borrow. This proof can come in a variety of forms, such as:
Bank statements
Personal credit score
Business credit score
Personal guarantee or another form of collateral.
In the absence of more detailed financial documents, some lenders may require a higher credit score to qualify, while others may require collateral or a personal guarantee.
How to qualify for a business loan
To qualify for a business loan, generally, lenders look for a strong business plan, good to excellent credit scores (both personal and business), a history of strong financial performance, and at least two years in business, Key Factors for Business Loan Qualification:
Business Credit Score:
A good business credit score is crucial, as lenders use it to assess your business's ability to repay the loan.
Personal Credit Score:
If your business is new or has a weak credit history, lenders may rely heavily on your personal credit score.
Financial Performance:
Lenders will examine your business's financial statements (income statements, balance sheets) to assess your cash flow and profitability.
Years in Business:
Generally, businesses with a history of at least two years are more likely to qualify for loans.
Business Plan:
A well-developed business plan demonstrates your understanding of the business and its financial projections, which reassures lenders.
Collateral:
Lenders often require collateral (assets like property, equipment, or inventory) to secure the loan, reducing their risk.
Debt-to-Income Ratio:
Lenders will consider your existing debts and their impact on your ability to repay the loan.
Industry:
Some industries are perceived as higher risk than others, which can affect loan eligibility.
Loan Purpose:
The reason for the loan (e.g., startup, expansion, working capital) can influence the type of loan and the terms offered.
SBA loan requirements for startups
To secure an SBA loan as a startup, you'll need to demonstrate a strong business plan, good credit (both personal and business, if applicable), and a reasonable ability to repay the loan, along with providing collateral if required.
Here's a more detailed breakdown of the key requirements:
1. Business Eligibility:
Operating Business: The business must be an operating business, not just a concept.
Profit Motive: The business must operate for profit.
Location: The business must be located in the U.S.
Small Business Size: The business must meet SBA's size requirements for a small business.
Creditworthiness: You must demonstrate creditworthiness and a reasonable ability to repay the loan.
Ineligible Businesses: Certain types of businesses are ineligible for SBA loans.
Ability to Obtain Credit: You must demonstrate that you cannot obtain the desired credit on reasonable terms from non-federal, non-state, and non-local government sources.
2. Financial Requirements:
Personal Credit:
Have good or excellent personal credit scores (ideally above 650). Be prepared to explain any credit issues.
Business Credit (if applicable):
If your startup has a credit history, provide a business credit report.
Tax Returns:
Have three years of personal tax returns and three years of business tax returns (if applicable) readily available for review.
Financial Projections:
Provide realistic financial projections demonstrating the business's ability to generate revenue and repay the loan.
3. Business Plan and Collateral:
Business Plan:
Develop a comprehensive business plan outlining your business goals, strategies, and financial projections.
Collateral:
Be prepared to provide collateral (assets like real estate, equipment, or inventory) to secure the loan, as required by the lender.
Debt Management:
Demonstrate a strong ability to manage debt and avoid defaulting on payments.
4. SBA Loan Types:
SBA 7(a) Loans:
These are the most common type of SBA loan, offering flexible terms and can be used for various business needs, including startup costs, working capital, and equipment purchases.
SBA 504/CDC Loans:
These loans are specifically designed for fixed assets like real estate and equipment, with a minimum down payment of 10%.
SBA Express Loans:
These term loans or lines of credit offer fixed or variable SBA loan rates, quick approval times, flexible terms, and lower down payment requirements than conventional loans.