Thursday, October 29th, 2020

now browsing by day

 

Separate Commercial and Consumer Credit in a Recession Phase

It’s a recession phase. You may have a new small business, or are now connected because you invested in one. Or maybe you have suddenly become an owner or a manager. No matter what, here is why you need to separate your commercial and consumer credit. This is especially vital during any recession phase. And yes, that includes during the coronavirus pandemic.

Separate Your Commercial and Consumer Credit and Protect Your Personal Assets During a Recession Phase

Small business credit is credit in a small business’s name. It doesn’t link to an owner’s personal credit, not even if the owner is a sole proprietor and the sole employee of the small business. 

Consequently, an entrepreneur’s business and personal credit scores can be very different.

The Advantages When You Separate Your Commercial and Consumer Credit

Given that business credit is distinct from personal, it helps to secure a small business owner’s personal assets, in case of litigation or business insolvency. This truly matters most during a recession phase.

Also, with two distinct credit scores, a small business owner can get two different cards from the same vendor. This effectively doubles buying power.

Another benefit is that even new ventures can do this. Going to a bank for a business loan can be a recipe for disappointment. But building business credit, when done properly, is a plan for success.

Consumer credit scores depend on payments but also various other factors like credit use percentages. 

But for business credit, the scores truly merely hinge on if a small business pays its debts on time.

Separate Your Commercial and Consumer Credit: The Recession Phase Process

Building small business credit is a process. It does not occur without effort. A company has to proactively work to build business credit. 

However, it can be done readily and quickly, and it is much faster than developing personal credit scores. 

Vendors are a big component of this process.

Undertaking the steps out of sequence leads to repetitive denials. No one can start at the top with company credit. For instance, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Separate Your Commercial and Consumer Credit and Build Small Business Fundability Even in a Recession Phase

A company needs to be fundable to lending institutions and vendors. 

Therefore, a small business needs a professional-looking website and email address. And it needs to have website hosting from a supplier such as GoDaddy. 

In addition, company telephone and fax numbers must have a listing on 411. You can do that here: http://www.listyourself.net

Additionally, the company phone number should be toll-free (800 exchange or similar).

A company also needs a bank account dedicated purely to it, and it has to have all of the licenses essential for operating. 

Licenses

These licenses all have to be in the particular, appropriate name of the small business. And they must have the same small business address and phone numbers. 

So keep in mind, that this means not just state licenses, but possibly also city licenses.

Recession Phase Credit Suite

Learn more here and get started with building small business credit with your company’s EIN and not your SSN. Get money even in a recession!

Separate Your Commercial and Consumer Credit  by Dealing with the Internal Revenue Service During a Recession Phase

Visit the Internal Revenue Service web site and get an EIN for the small business. They’re free of charge. Pick a business entity like corporation, LLC, etc.

A small business may begin as a sole proprietor. But they absolutely need to switch to a type of corporation or an LLC.

This is to decrease risk. And it will maximize tax benefits.

A business entity matters when it involves taxes and liability in case of litigation. A sole proprietorship means the business owner is it when it comes to liability and taxes. No one else is responsible.

The best thing to do is to incorporate. You should only look at a DBA as an interim step on the way to incorporation.

Economic Downturn Separate Biz and Personal Credit Suite

Separate Your Commercial and Consumer Credit and Start Off the Business Credit Reporting Process During a Recession Phase

Begin at the D&B web site and get a cost-free D-U-N-S number. A D-U-N-S number is how D&B gets a business in their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s websites for the small business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for accuracy and completeness. If there are no records with them, go to the next step in the process. 

In this way, Experian and Equifax have something to report on.

Starter Vendor Credit

First you need to build tradelines that report. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can start to get credit for numerous purposes, and from all sorts of places.

These sorts of accounts have the tendency to be for things bought all the time, like marketing materials, shipping boxes, outdoor workwear, ink and toner, and office furniture.

But first off, what is trade credit? These trade lines are credit issuers who give you starter credit when you have none now. Terms are in most cases Net 30, versus revolving.

So, if you get an approval for $1,000 in vendor credit and use all of it, you must pay that money back in a set term, like within 30 days on a Net 30 account.

Details

Net 30 accounts have to be paid in full within 30 days. 60 accounts must be paid completely within 60 days. Compared to revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you used.

To begin your business credit profile properly, you ought to get approval for vendor accounts that report to the business credit reporting bureaus. As soon as that’s done, you can then use the credit.

Then pay back what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Vendor Credit – It Helps

Not every vendor can help in the same way true starter credit can. These are vendors that grant approval with marginal effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

As you get starter credit, you can also start to get credit from retailers. This is to continue to confirm you are trustworthy and pay on time. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/

Uline

Uline is a true starter vendor. You can find them online at www.uline.com. They offer shipping, packing, and industrial supplies, and they report to Dun & Bradstreet and Experian. You MUST have a D-U-N-S number and an EIN before starting with them. They will ask for your company bank information. Your business address must be uniform everywhere. You need for an order to be $50 or more before they’ll report it. Your first few orders may need to be prepaid initially so your business can get approval for Net 30 terms.

  • How to apply with them:
  • Add an item to your shopping cart
  • Go to checkout
  • Select to Open an Account
  • Select to be invoiced

Crown Office Supplies

Crown Office Supplies is an additional true starter vendor. You can find them online at https://crownofficesupplies.com. They sell a variety of office supplies and take helping clients seriously. They state, “just starting your business, or maybe have an existing business, but you have a question regarding office supplies… we are here to help!” And they report to Dun and Bradstreet, Experian, and Equifax.

There is a $99.00 yearly fee, though they do report that fee to the business credit reporting bureaus. For other purchases to report, the purchase needs to be at least $30.00. Terms are Net 30.

  • Here’s how to qualify:
  • Your business entity must be in good standing with the applicable Secretary of State
  • You must have an EIN and a D-U-N-S number
  • Business address (it has to match everywhere)
  • Business license (if applicable)
  • A corporate bank account
  • Business must be at least 60 days old
  • Membership fee is $99 per year upon approval

Apply online.

Grainger Industrial Supply

Grainger Industrial Supply is also a true starter vendor. You can find them online at www.grainger.com. They sell hardware, power tools, pumps and more. They also do fleet maintenance. And they report to D&B. You must have a business license, EIN, and a D-U-N-S number.

  • To qualify, you need the following:
  • A business license (if applicable)
  • An EIN number
  • A company address matching everywhere
  • A company bank account
  • A D-U-N-S number from Dun & Bradstreet

Your corporate entity must be in good standing with the applicable Secretary of State. If your business doesn’t have established credit, they will require additional documents. So, these are items like accounts payable, income statement, balance sheets, and the like.

Apply online or over the phone.

Accounts That Don’t Report

Non-reporting trade accounts can also be helpful, even in a recession phase. While you do want trade accounts to report to at least one of the CRAs, a trade account which does not report can still be of some value.

You can always ask non-reporting accounts for trade references. And also credit accounts of any sort ought to help you to better even out business expenses, thus making budgeting easier. These are providers like PayPal Credit, T-Mobile, and Best Buy.

Store Credit

Store credit comes from a variety of retail companies.

You must use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use the business’s EIN on these credit applications.

Fleet Credit

Fleet credit is from companies where you can purchase fuel, and repair and take care of vehicles. You must use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the small business’s EIN.

Recession Phase Credit Suite

Learn more here and get started with building small business credit with your company’s EIN and not your SSN. Get money even in a recession!

Cash Credit

These are businesses like Visa and MasterCard. You must use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

These are often MasterCard credit cards.

Separate Your Commercial and Consumer Credit and Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and take care of any errors ASAP. Get in the practice of taking a look at credit reports. Dig into the particulars, not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the business credit reporting agencies. See: www.creditsuite.com/monitoring.

At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business.

Update Your Record

Update the information if there are errors or the information is incomplete. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm . For Experian, go here: www.experian.com/small-business/business-credit-information.jsp . So for Equifax, go here: www.equifax.com/business/small-business.

Recession Phase Credit Suite

Learn more here and get started with building small business credit with your company’s EIN and not your SSN. Get money even in a recession!

Separate Your Commercial and Consumer Credit and Fix Your Business Credit During a Recession Phase

So, what’s all this monitoring for? It’s to contest any mistakes in your records. Mistakes in your credit report(s) can be fixed. But the CRAs often want you to dispute in a particular way.

Get your company’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax business credit report at: www.equifax.com/business/credit-information.

Disputes

Disputing credit report inaccuracies typically means you send a paper letter with duplicates of any proof of payment with it. These are documents like receipts and cancelled checks. Never send the originals. Always send copies and keep the originals.

Fixing credit report errors also means you specifically detail any charges you challenge. Make your dispute letter as clear as possible. Be specific about the issues with your report. Use certified mail to have proof that you mailed in your dispute.

Dispute your or your business’s Equifax report by following the directions here: www.equifax.com/small-business-faqs/#Dispute-FAQs.

You can dispute errors on your or your business’s Experian report by following the instructions here: www.experian.com/small-business/business-credit-information.jsp.

And D&B’s PAYDEX Customer Service telephone number is here: www.dandb.com/glossary/paydex.

A Word about How to Separate Your Commercial and Consumer Credit During a Recession Phase

Always use credit smartly! Don’t borrow beyond what you can pay off. Keep track of balances and deadlines for repayments. Paying punctually and in full does more to raise business credit scores than pretty much anything else.

Growing company credit pays off. Good business credit scores help a business get loans. Your loan provider knows the business can pay its debts. They understand the business is authentic.

The business’s EIN attaches to high scores and lenders won’t feel the need to ask for a personal guarantee. This is particularly helpful during a recession phase.

Separate Your Commercial and Consumer Credit in a Recession Phase: Takeaways

Business credit is an asset which can help your company for many years to come. Learn more here and get started toward building company credit. The COVID-19 situation will not last forever!

The post Separate Commercial and Consumer Credit in a Recession Phase appeared first on Credit Suite.

Best Dropshipping Companies

Disclosure: This content is reader-supported, which means if you click on some of our links that we may earn a commission.

It’s no secret that the ecommerce industry has been booming. As those trends continue to climb, the dropshipping market is following the same trajectory. 

Dropshipping makes it possible for anyone to run an ecommerce shop without having to purchase, store, or ship inventory. Essentially, you can operate an ecommerce site from your couch without ever touching the products you’re selling. 

But in order to do this successfully, you’ll need to find a dropshipping company to handle the logistics of fulfilling orders. 

Whether you have an existing ecommerce business or you’re new to selling online, this guide will help you find the best dropshipping company for your unique needs. Continue below to learn more about my top recommendations and strategy for evaluating different options. 

The Top 7 Options For Dropshipping Companies

  1. Doba
  2. Wholesale2b
  3. Oberlo
  4. Megagoods
  5. SaleHoo
  6. Dropified
  7. Inventory Source

How to Choose the Best Dropshipping Company For You

There are hundreds, if not thousands of different dropshipping companies on the market today. Without a buying guide to follow, narrowing down your options can seem like an insurmountable task. To make your life easier, follow the methodology that I’ve outlined below. 

These are the factors that you should take into consideration as you’re researching and evaluating different dropshipping solutions:

Type of Dropshipping Company

Dropshipping companies come in all different shapes and sizes. So the first thing you need to do is determine what type of company will meet the requirements for your business.

Do you need a manufacturer? Wholesale supplier? Supplier directory? In some instances, you might just be looking for dropshipping software to facilitate your existing supplier relationship. 

We’ll cover the types of dropshipping companies in greater detail shortly. This will give you a more detailed explanation of your options. 

Ecommerce Platform

Next, you need to make sure that the company you’re considering supports your sales platform. It’s worth noting that not all dropshipping solutions are compatible with every ecommerce website. 

For example, online stores using Shopify won’t necessarily be using the same dropshipping company as a business selling via eBay or Amazon. A brick-and-mortar retailer that wants to add an online sales channel won’t have the same needs as new business selling via Wix or WooCommerce. 

So verifying the compatibility between your online sales channel and the dropshipping company’s logistics will be a great way to narrow down your choices. 

Wholesale Pricing

In addition to the logistical benefits of dropshipping, you’ll also have access to wholesale rates. But like any type of inventory, those prices will vary from supplier to supplier. 

Some dropshipping companies force you to pay a monthly or annual membership for access to wholesale pricing. In many cases, these membership fees are well-worth the discounts you’ll get as a result. But usually, the manufacturers will offer the best rates if you buy directly through them. 

You’ll have to walk the line between what makes sense for your convenience vs. profit margins. 

Industry and Products

What products are you selling? What are you planning to sell online?

The answer to these questions will definitely impact the dropshipping company you choose. If you’re selling shirts and hats, you probably won’t have the same dropshipping needs as an online store that sells computers, headphones, and other electronics. 

Are you selling brand name products? Or will you be putting your own logo on inventory? 

These are other questions to consider as you’re evaluating prospective solutions. 

Process Automation

The best dropshipping companies leverage automation, which allows you to be as hands-off as possible. 

You need to understand the logistics between how orders get processed from company to company. What happens after a customer buys something online? How does that order ultimately end up at their doorstep? The answer varies depending on the solution you choose.

In some cases, you’ll have to manually enter those order details from your own website to the dropshipping platform. But with an automated process, you won’t have to do anything. An online order will automatically be sent to the supplier without any extra steps on your end. 

For those of you who already have relationships with suppliers, you can leverage dropshipping software to automate your fulfillment process. 

Quality and Speed

Even though you’re not touching the products with dropshipping, your company is still responsible for the product itself. 

The customer doesn’t care where the product came from or who shipped it. They expect high-quality products delivered quickly. If the dropshipping company you’re using takes weeks to ship and delivers defective products, it’s going to be a poor reflection of your company—not theirs.  

So choose a company with an established reputation in this space. You might have to pay a little extra for the inventory, but it’s worth it to keep your customers satisfied. 

The Different Types of Dropshipping Companies

As previously mentioned, there are different categories within the dropshipping space. Here’s a quick overview that explains each type of dropshipping company. This will make it easier for you to determine which type addresses what your business is looking for. 

Dropshipping Marketplaces

A dropshipping marketplace is an online platform with a network of different dropshipping companies. You’ll be able to facilitate your entire operation and manage the relationships between different dropshippers from a single place. 

This is a great option for ecommerce shops that plan to sell products in different categories sourced from multiple suppliers. It’s also a great way to shop around and evaluate different companies from a single source of truth. 

Manufacturers

Going straight to the manufacturer is one of the best ways to get the lowest possible whole inventory prices—you won’t be going through a third-party.

However, not every manufacturer will be set up to facilitate dropshipping out of the gate. So you might need to use dropshipping software to manage this relationship. Another downside of using a manufacturer is that you’ll be limited to what that manufacturer produces. If you want to sell products that they don’t make, you’ll need to source them from a different manufacturer. At scale, this can be tough to manage. 

Wholesale Suppliers

A wholesale supplier doesn’t necessarily manufacture products. But they operate warehouses with inventory from various manufacturers. 

The prices from a wholesale supplier will still be low, but definitely not as low compared to coming directly from the manufacturer (the wholesaler has to take a cut). These dropshipping companies are great for businesses that want to sell a wide range of different products in various categories. 

Supplier Directories

Supplier directories don’t actually handle dropshipping. Similar to an online marketplace, it’s a single location for you to find various suppliers. 

But to access information about these suppliers and prices, you usually have to pay a membership fee to the directory. 

Dropshipping Software

Dropshipping software is a great way for online stores to automate order fulfillment with their suppliers and manufacturers. These tools eliminate the need for ecommerce shops to manually enter order details after something is purchased through their online sales channels.

With dropshipping software, the order information gets sent directly to the supplier for fulfillment. This is faster, more efficient, reduces human error, and allows the site operators to stay more hands-off. 

#1 – Doba Review — The Most Versatile Dropshipping Company

Doba is one of the most popular dropshipping services on the market today. Its popularity is largely due to the fact that it can accommodate such a wide range of ecommerce shops with varying needs.

With Doba, you’ll have access to millions of products from hundreds of suppliers in a single online catalog. Here’s how it works:

Other noteworthy highlights of Doba include:

  • Compatible with 100+ ecommerce platforms including Shopify, Magento, BigCommerce, Volusion, eBay, Amazon, etc.
  • Information on each supplier (average processing time, fulfillment rates, cost, etc.)
  • Manage product lists and discover trending products
  • Advanced search and filtering
  • Data exports in a wide range of formats
  • Inventory management tools
  • Proactive inventory and price change alerts

Plans start at $29 per month. If you sign up for an annual subscription, you’ll get two months for free. Try it free for 30 days. 

#2 – Wholesale2b Review — Best Free and Simple Dropshipping Company

More than one million products are available on Wholesale2b. The platform makes it easy for anyone to integrate dropshippers to their online store.

Wholesale2b is compatible with multiple sales channels and online marketplaces like Amazon, WooCommerce, Shopify, BigCommerce, Ecwid, eBay, Magento, and more.

Here are some of the top reasons why Wholesale2b ranks so high on my list:

  • Free to sign up; no credit card required
  • Easy to get started
  • Extensive product catalog with options from multiple categories and industries
  • 100+ dropshippers in the Wholesale2b network
  • Automatic order imports and inventory tracking
  • Ability to create a new turnkey ecommerce site from scratch

Whether you have an existing online store you’re planning to start a new ecommerce business, Wholesale2b has you covered. Sign up and try it today—it’s free.  

#3 – Oberlo Review — The Best For Shopify Stores

If you’re using Shopify to sell online, look no farther than Oberlo. The platform integrates seamlessly with your Shopify store, so you can start dropshipping with ease.

More than 100 million products have been sold online with Oberlo. 

Oberlo is free for basic use, but you’ll definitely want to upgrade to a paid plan, or you’ll be limited with what you can accomplish. Some of the top features include:

  • Unlimited monthly orders
  • Free Oberlo Chrome extension
  • Bulk orders
  • Real-time order tracking
  • Variant mapping
  • CAPTCHA solver
  • Ebooks, guides, and free learning tools
  • 24/7 customer support
  • Customizable listing information 
  • Powerful product data

Paid plans start at $29.90 per month. This entry-level plan supports up to 10,000 products. You can join Oberlo for free to get started. 

#4 – Megagoods Review — The Best For Consumer Electronics

Megagoods is my top recommendation for online retailers in the consumer electronics space. 

They provide fast shipping, efficient processing, and have a great selection of brand name electronics products. 

Here are some of the most popular product categories offered through the Megagoods platform:

  • Headphones
  • Alarm clocks
  • Car audio
  • Televisions
  • Speakers
  • Home theaters
  • DVD players
  • DJ products
  • Bluetooth products
  • PA systems
  • Portable electronics
  • Gaming products

In addition to the extensive electronics options, Megagoods also supplies items like watches, kitchen appliances, cutlery, cookware sets, and more. 

The interface is a little outdated, but a Megagoods subscription costs just $14.99 per month. This membership fee gives you access to exclusive pricing. Try it free for 30 days. 

#5 – SaleHoo Review — The Best Wholesale Directory

SaleHoo is one of the most popular wholesaler directory platforms on the market today. A membership grants you access to 2.5+ million products from 8,000+ suppliers.

With SaleHoo, you can find products and start selling them online in a matter of minutes.

For 15+ years, more than 137,000 people have used SaleHoo to sell online with dropshipping services. Here are some other reasons why they come so highly recommended:

  • All suppliers have been pre-vetted
  • Unlimited dropshipping training
  • Award-winning customer support
  • Plans are backed by a 60-day money-back guarantee
  • Market research tools for hot products and high profit margins
  • Easy to navigate with a modern interface
  • Ability to automate your online store

Annual pricing for the SaleHoo supplier directory costs $67. Alternatively, you can pay a one-time fee of $127 for lifetime access. Try it risk-free. 

#6 – Dropified Review — The Best For eBay Sourcing

Dropified is another popular dropshipping solution. It seamlessly integrates with ecommerce platforms like Shopify, WooCommerce, BigCommerce, and more.

Unlike other dropshipping tools, Dropfied is also compatible with eBay and AliExpress. 

If you’re using eBay or AliExpress for inventory, Dropfied eliminates the need to copy and paste customer order details. These orders can automatically be shipped to your customers directly from the supplier. 

Other top features and perks of using Dropfied include:

  • Automatic order fulfillment
  • Automatic price change updates
  • Dynamic Facebook feeds
  • Automatic product availability updates
  • Simple product variant setups
  • Easy product filtering
  • Product and inventory sync
  • Add to your ecommerce store with a single click
  • Product customization
  • Automatically import product reviews from vendors
  • Easy to change vendors for different products

This list of features and benefits goes on and on. It’s quite extensive, to say the least. Dropified plans start at $47 per month. The entry-level plan supports 15,000 products and unlimited monthly orders. Try it free for 14 days.

#7 – Inventory Source — Best Dropshipping Automation Software

Inventory Source is a bit unique compared to other dropshipping companies on our list. They provide software to facilitate dropshipping automation.

To improve the logistics with your existing suppliers, Inventory Source will be a great option for you to consider. 

Here’s why I like Inventory Source so much:

  • Integrates with 25+ ecommerce platforms (Shopify, eBay, Amazon, Walmart, Magento, WooCommerce, 3dcart, etc.)
  • Full product data integration
  • Dropship order automation
  • Automatic inventory sync
  • Free directory of 230+ suppliers
  • Ability to add your own suppliers outside of the Inventory Source directory
  • Bulk feed management tools

Overall, the software is really easy to set up. It will benefit you and your suppliers alike. Plans start at $99 per month. You can create an account for free to browse supplier product feeds, automation tools, and integrations.

Summary

The concept of dropshipping is extremely appealing for anyone interested in selling online. But it only works well if you’re using the right dropshipping company. 

Which dropshipping company is the best? It depends on your needs.

Just use the recommendations and buying guide explained in this post to find the best dropshipping services for your online store. 

The post Best Dropshipping Companies appeared first on Neil Patel.

Font Resize